Find the price bounds for the five- month forward price for Boring Unreliable Gadgets when - BUGs

Question:

Find the price bounds for the five- month forward price for Boring Unreliable Gadgets when
- BUG’s stock price S is $50 today
- A trader can borrow money at 5 percent and lend money at 4 percent, where the interest rates are annual simple interest rates
- A brokerage commission of 0.5 percent of the stock price is charged today but your waives transaction costs on the date
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...