What is the no-arbitrage forward price for delivery in 6


The S&R index spot price is $1100, the risk-free rate is 5%, and the continuous dividend yield on the index is 2%.

a) What is the no-arbitrage forward price for delivery in 6 months?

b) Find the price of a prepaid forward contract for deliver in 6 months.

c) Find the annualized forward premium or discount.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the no-arbitrage forward price for delivery in 6
Reference No:- TGS02338969

Expected delivery within 24 Hours