Question: A How should the parity condition equation 20 2 for stocks

a. How should the parity condition (equation 20.2) for stocks be modified for futures contracts on Treasury bonds? What should play the role of the dividend yield in that equation?
b. In an environment with an upward- sloping yield curve, should T- bond futures prices on more-distant contracts be higher or lower than those on near- term contracts?

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  • CreatedJune 21, 2015
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