Question: 2. Example 2: For a stock: (i) The stock's price is 40 . (ii) A stock pays continuous dividends at a rate of 4%. (iii)

 2. Example 2: For a stock: (i) The stock's price is

2. Example 2: For a stock: (i) The stock's price is 40 . (ii) A stock pays continuous dividends at a rate of 4%. (iii) The continuously compounded risk-free rate is 10%. Party A buys 10,000 180-day futures contracts from Party B. Each contract allows purchase of 1 share of stock. After 1 day, the price of the stock increases to 42 . Calculate the amount paid by party B to party A after 1 day

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