Question: A stock index stands at 3000 with a continuously compounded dividend yield of 2.8%. The risk free rate is still 4%. What is the

A stock index stands at 3000 with a continuously compounded dividend yield

 

A stock index stands at 3000 with a continuously compounded dividend yield of 2.8%. The risk free rate is still 4%. What is the no-arbitrage price on a one-year index forward contract if the continuously compounded Six months later the value of the index is 3100 what is the value of the original long forward position?

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