Last month you entered a long forward position in 200 shares of a stock-index ETF with a
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Question:
Last month you entered a long forward position in 200 shares of a stock-index ETF with a delivery price of $105 per share. There are three months remaining until delivery. The current value of the ETF is $101 per share. The dividend rate of the index is 4% and the riskless rate is 2.5% (both APR with continuous compounding). Find the current value of your forward position.
Related Book For
Essentials of Investments
ISBN: 978-0077835422
10th edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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