Assume an SPI (ASX 200) futures contract with 0.5 years to expiry. Suppose that the shares...

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Assume an SPI (ASX 200) futures contract with 0.5 years to expiry. Suppose that the shares comprising the index are estimated to give a dividend yield of 0.08 per annum (in decimal places). The current value of the SPI is 4,355; and the continuously compounded risk-free interest rate is 0.05 per annum (in decimal places) then the 0.5 year SPI futures price should be: Round off your answer to the nearest whole number. Question 4 A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $38. The current forward price for three- month forward contract is $44. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract? Note: Insert "_" if the answer shows negative and rounded to two decimal places. Question 5 The current price of silver is $24.02 per ounce. The storage costs are $1.92 per ounce per year payable quarterly in advance. Assuming that interest rate is 10% per annum for all maturities. What should be the futures price of silver for delivery in 6 months? Assume an SPI (ASX 200) futures contract with 0.5 years to expiry. Suppose that the shares comprising the index are estimated to give a dividend yield of 0.08 per annum (in decimal places). The current value of the SPI is 4,355; and the continuously compounded risk-free interest rate is 0.05 per annum (in decimal places) then the 0.5 year SPI futures price should be: Round off your answer to the nearest whole number. Question 4 A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $38. The current forward price for three- month forward contract is $44. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract? Note: Insert "_" if the answer shows negative and rounded to two decimal places. Question 5 The current price of silver is $24.02 per ounce. The storage costs are $1.92 per ounce per year payable quarterly in advance. Assuming that interest rate is 10% per annum for all maturities. What should be the futures price of silver for delivery in 6 months?

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Question 1 To calculate the 05 year SPI futures price we need to consider the current value of the SPI the dividend yield and the riskfree interest ra... View the full answer