Question: I want the solution of question no. 4 by using the way of question no. 2 2. (Proportional carrying charges o) Suppose that a forward

I want the solution of question no. 4 by using

I want the solution of question no. 4 by using the way of question no. 2

2. (Proportional carrying charges o) Suppose that a forward contract on an asset is written at time zero and there are M periods until delivery Suppose that the carrying charge in period & is qS(K), where s(k) is the spot price of the assct in period k Show that the forward price is (1 - 7)" d(0, M) ) FORWARDS, FUTURES, AND SWAPS (Hin Consider a portfolio that pays all carrying costs by selling a fraction of the asset ils required Let the number of units of the asset held a time & be r(6) and find (M) in terms of x(0)) 2. (Proportional carrying charges o) Suppose that a forward contract on an asset is written at time zero and there are M periods until delivery Suppose that the carrying charge in period & is qS(K), where s(k) is the spot price of the assct in period k Show that the forward price is (1 - 7)" d(0, M) ) FORWARDS, FUTURES, AND SWAPS (Hin Consider a portfolio that pays all carrying costs by selling a fraction of the asset ils required Let the number of units of the asset held a time & be r(6) and find (M) in terms of x(0))

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