After determine that there is an arbitrage opportune and the future prices for year 1 and 2 From this scenriio listed below make sure there is no error when giving me the answers please ASAP A Index has currently a value of $10,000, and pays a dividend yield of 3%. What should be the price of a futures contract on the index for delivery in 1 year and what for delivery in 2 years? Assume that the interest rates for 2 years out are flat at 9%. If the one-year futures is trading in the market for $9,500 what will you do? Please give additional details that may be overlooked and that isn’t mentioned when preparing a presentation for it with a lot more details
After determine that there is an arbitrage opportune and the future prices for year 1 and 2 From this scenriio listed below make sure there is no error when giving me the answers please ASAP A Index has currently a value of $10,000, and pays a dividend yield of 3%. What should be the price of a futures contract on the index for delivery in 1 year and what for delivery in 2 years? Assume that the interest rates for 2 years out are flat at 9%. If the one-year futures is trading in the market for $9,500 what will you do? Please give additional details that may be overlooked and that isn’t mentioned when preparing a presentation for it with a lot more details
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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After determine that there is an arbitrage opportune and the future prices for year 1 and 2
From this scenriio listed below
make sure there is no error when giving me the answers please ASAP
A Index has currently a value of $10,000, and pays a dividend yield of 3%. What should be the price of a futures contract on the index for delivery in 1 year and what for delivery in 2 years? Assume that the interest rates for 2 years out are flat at 9%. If the one-year futures is trading in the market for $9,500 what will you do?
Please give additional details that may be overlooked and that isn’t mentioned when preparing a presentation for it with a lot more details
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