A futures trader has just taken a short position in a one year forward contract on a dividend paying stock The stock will pay a dividend of $2 per share in five months and in eleven months The stock price is currently selling for $100 and the risk free rate of interest is 8 50 per year with contin...

a To calculate the forward price F0 and the initial value of the forward contract we can use the for ...

A futures trader has just taken a short position in a one-year forward contract on a...

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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A futures trader has just taken a short position in a one-year forward contract on a...

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Fundamentals of Futures and Options Markets

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