The DJIA index is currently at 31,090, its dividend yield is 1.90% and the risk-free rate is

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The DJIA index is currently at 31,090, its dividend yield is 1.90% and the risk-free rate is 1.00%.

a. Price a one-hundred days to maturity DJIA forward contract.

b. Thirty days later the DJIA drops to 29,500.

Calculate the value of the forward you priced?

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Investments

ISBN: 9781259271939

9th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian

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Posted Date: Jun 22, 2023 03:21 AM

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The DJIA index is currently at 31,090, its dividend yield is 1.90% and the risk-free rate is

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