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

An American call option expiring in 3 - years has an exercise price of E1,500.00 on the Eswatini stockmarket and currently trades at E1,940.00. It is anticipated that the stock will rise by a factor of 1.10 andfell by a factor of 0.80. If the interest rate is 6%; find the upward prices of the option until its expiry andthe pay - offs a binomial tree.

Today is September 1. A futures contract on crude oil expiring on December 20 of the same year has a futures price of $44.70. The volatility on the futures contract is 23%, and the continuously compounded risk-free rate is 2%. Assume that there are 365 days in a year.  a. What is the Black model price of a European call option on this futures contract, expiring on December 20 and with an exercise price of $46? b. What is the Black model price of a European put option on this futures contract, expiring on December 20 and with an exercise price of $50?

Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day.a. If the margin requirement is 23% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the March maturity contract? (Round your answer to the nearest whole dollar.)Required margin depositb. If the March futures price increases to 2594.70, what percentage return will you earn on your investment if you entered the long side of the contract at the price shown in the figure? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Percentage return on net investment%c. If the March futures price falls by 1%, what is your percentage return? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)Percentage return on net investment%