Use european options to create a short forward position


1. What is the capitalized value, when i=17% per year, of $600 per year, starting in year one and continuing forever, and $16000 in year five, repeating every five years thereafter, continuing forever?

2. Use European options to create a short forward position, where you agree today to sell a stock in three months at a (forward) price of K.

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Financial Management: Use european options to create a short forward position
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