You are given information that the spot price of an asset is trading at a bid-ask quote

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You are given information that the spot price of an asset is trading at a bid-ask quote of 80 − 80.5, and the six-month interest rate is 6%. What is the bid-ask quote for the six-month forward on the asset if there are no dividends?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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You are given information that the spot price of an asset is trading at a bid-ask quote

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There are two possible forwardspot arbitrage strateg...View the full answer

Derivatives Principles And Practice

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