Question: Explain FIVE variables that may affect the value of a forward contract (5 marks) 2. Show how you would make a portfolio delta-neutral and also

  1. Explain FIVE variables that may affect the value of a forward contract (5 marks)

2. Show how you would make a portfolio delta-neutral and also self-financing by including bonds and call options to a stock that is currently traded at sh. 100, given that the delta for the call = 0.2499 and the call price = sh5.55.

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