Question: Note that this is non continuous compounding Question 4 Assume you have the following information: Not yet answered KLCI = 1,606.88 Marked out of 2.00

 Note that this is non continuous compounding Question 4 Assume you

Note that this is non continuous compounding

Question 4 Assume you have the following information: Not yet answered KLCI = 1,606.88 Marked out of 2.00 FKLI = 1,620 Flag question Dividend yield = 2% Interest rates = 5% Time to maturity = 3 months Using cost-of-carry model (non-continuous compounding), calculate the intrinsic price of the FKLI

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