Question: A future contract that matures one year from today has a future price of $820 for an NVDA share. The contract consists of 100

A future contract that matures one year from today has a future

A future contract that matures one year from today has a future price of $820 for an NVDA share. The contract consists of 100 shares. Assumes that there is no dividend payment. a. If the risk-free rate is 3%, what is the current market price of the NVDA? b. If the market price of the NVDA is $870 at the maturity date, who is making a profit, the buyer (long) or the seller (short) of the futures contract? And how much is the profit? c. Why would someone buy a futures contract rather than the asset itself?

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