Question: answer is b i need solution What should the current market price of a share be if the futures contract on this share is currently

answer is b i need solution answer is b i need solution What should the current market price

What should the current market price of a share be if the futures contract on this share is currently priced at PLN 100 and the risk-free rate on this market is \7 ? The share pays a (continuous) dividend of \3. The time to maturity of the contract is 1.5 years. a) close to 96.08 PLN. b) close to 94.18 PLN. c) close to 90.03 PLN. d) close to \$ 106.18 \\mathrm{PLN} \$

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

ABC Corporation, with changing investment opportunities has considered a major change in dividend policy. The current market price of its share is $100 each. It currently has 50 million shares...

8 1111 Suppose unleaded gasoline is currently trading at $2.30 per gallon You foce an interest rate of 3 60 percent and a carrying cost of $06 per gallon per month. The current market price of a four...

ABC Corporation, with changing investment opportunity has considered a major change in dividend policy. The current market price of its share is $100 each. It currently has 50 million shares...

Please include steps and explanations 3. What should the current market price of a share be if the futures contract on this share is currently priced at PLN 100 and the risk-free rate on this market...

Assume discrete discounting or compounding in the question. Assume a risk free interest rate of 5% p.a. and that there are A and B, two infrastructure firms. A is relatively big according to market...

R THE FOLLOWING MULTIPLE CHOICE QUESTIONS: [MARK THE MOST APPROPRIATE Which of the following rated bonds have the least rik? Bond rating is mainly ANSWER ,4 a measure of rate risk b. re-investment...

4. Answer the following multiple questions and with "Explanation". (explanation ) a) The mutual funds are good for investments because they are: 1) all efficient portfolios 2) safe investments 3)...

Old MathJax webview 1. For Project B, Calculate the expected net present value (NPV), internal rate of return (IRR), Profitability index (PI), return on capital employed (ROCE), Payback Period (PP)...

Can someone please answer based on instructions and proper steps to calculations, please? 4. One year ago, Daniel bought 500 shares of Bliona Inc. stock for $8.00 per share. Over the year, Bliona...

The automatic transmission in a car receives 25 kW shaft work and gives out 24 kW to the drive shaft. The balance is dissipated in the hydraulic fluid and metal casing, all at 45oC, which in turn...

What is the GFP? In what ways does a green fluorescing cell differ from a cell fluorescing from, for example, phylogenetic staining?

Birmingham Enterprises reported Blonds Parable of 5 5 , 0 0 0 , 0 0 0 at December 3 1 , 2 0 0 c 1 and Bondr Papable of $ 5 2 0 0 0 0 0 at December retire bonds that had a face amount of $ 2 5 0 0 , 0...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...