Is the ssf market in equilibrium


Problem:

2006 NOK(Nokia) SSF (Single Stock Futures) contract is trading for $17.00.

a. If you sell and hold the short position until expiration, what will I have to do on the expiration date?

b. If Intel is currently trading on the NYSE (its cash market) for $16.00, at what annual rate can you effectively (really) borrow and lend money for from the SSF market?

c. If the going annual interest rate in the Money Market is 6.25%, is the SSF market in equilibrium?

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Finance Basics: Is the ssf market in equilibrium
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