Assume an asset is priced at $2000 and the risk free rate is 3.00%. Storage costs for

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Assume an asset is priced at $2000 and the risk free rate is 3.00%. Storage costs for the asset are $15 payable in advance and the asset pays a $40 dividend in 6 months what should a one year forward be priced at?

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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Apr 15, 2021 01:00 AM

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Assume an asset is priced at $2000 and the risk free rate is 3.00%. Storage costs for

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203485 Calculation of forward price Forward price Spot price Storage cost1 r T D 1r T t Where Spot ... View the full answer

Fundamentals of Corporate Finance

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