Question
Todays share price of AAPL is $112.28/Share and the continuously compounded interest rate is 3%. A dealer in the over the counter market for forwards
Todays share price of AAPL is $112.28/Share and the continuously compounded interest rate is 3%. A dealer in the over the counter market for forwards quotes you a forward contract for 100 shares of AAPL with two years to maturity and a quoted Forward price of $115.00/share. What are nominal profits from exploiting this mispricing?
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
