A short futures contract on a non-dividend paying stock was entered some time ago. It now has

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A short futures contract on a non-dividend paying stock was entered some time ago. It now has 6 months to maturity. The risk-free rate of interest is 10% per year. The stock is currently trading at $25/share and the delivery price is $24/share.

How much is your position worth today (ignore marking to market costs) ?

How things would be different if the stock had a dividend of $1per?

Related Book For answer-question

Risk Management and Financial Institutions

ISBN: 978-1118955949

4th edition

Authors: Hull John

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Posted Date: Jun 22, 2021 09:01 PM

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A short futures contract on a non-dividend paying stock was entered some time ago. It now has

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Risk Management and Financial Institutions

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