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The spot price of an asset is $500 and the risk-free rate for all maturities is 3% with continuous compounding. The asset provides an income
The spot price of an asset is $500 and the risk-free rate for all maturities is 3% with continuous compounding. The asset provides an income of $20 in six months, and again in one year. What is today's forward price of the asset for delivery in one year immediately after the second $20 payment is made?
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Derivatives Principles And Practice
Authors: Rangarajan Sundaram
2nd Edition
0078034736, 9780078034732
