Suppose there is a futures contract on a portfolio of stocks that currently are worth $100 The futures has a life of 90 days, and during that time, the stocks will pay dividends of $0 75 in 30 days, $0 85 in 60 days, and $0 90 in 90 days The simple interest rate is 12 percent a Find the price of th...

a Find the future value of the dividends 075112 60365 0 ...

Suppose there is a futures contract on a portfolio of stocks that currently are worth $100. The

Question:

Suppose there is a futures contract on a of that currently are worth $100. The futures has a life of 90 days, and during that time, the will pay dividends of $0.75 in 30 days, $0.85 in 60 days, and $0.90 in 90 days. The simple interest rate is 12 percent?
a. Find the price of the futures contract assuming that no arbitrage opportunities are present.
b. Find the value of 9, the cost of carry in dollars. Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...