Question: Help me, Consider a 6-month forward contract on an asset that is expected to provide income equal to 2% of the asset price once during
Help me,
Consider a 6-month forward contract on an asset that is expected to provide income equal to 2% of the asset price once during a 6-month period. The risk-free rate of interest, with continuous compounding, is 10% p.a. The asset price is $25. What is the delivery of the forward contract?
Thank you so much.
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