Different for investors


Assume that the lending rate r1 and the borrowing rate r2 are different for investors so that r1>r2. Show that the no arbitrage forward price F(0,T) satisfies

S(0)e^r1*T <= F(0,T) <= S(0)e^r2*T

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Different for investors
Reference No:- TGS0872924

Expected delivery within 24 Hours