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The spot price on the Dow Jones is $20,000 and the 1-year E-mini Dow Jones future price is $20,609.09. The 1-year risk-free rate is 3%
The spot price on the Dow Jones is $20,000 and the 1-year E-mini Dow Jones future price is $20,609.09. The 1-year risk-free rate is 3% per annum with continuous compounding. Draw the profit and payoff function for this long future. Remember an E-mini Dow Jones futures contract is for 5 times the Dow Jones.
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