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You just bought a one - year futures contract on the stock of Brandex, a company that pays no dividend. The risk - free rate
You just bought a oneyear futures contract on the stock of Brandex, a company that pays no dividend. The riskfree rate is per year. The stock is currently trading at $ per share.
a According to the spotfutures parity theorem, what should be the price of the futures contract today?
b Nine months later, the stock price in the spot market drops by What should be the price of the futures contract at that time?
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