Question: Please please provide me solution of given problem. Question. A short futures contract on a non-dividend paying stock was entered some time ago. It now
Please please provide me solution of given problem. Question. A short futures contract on a non-dividend paying stock was entered some time ago. It now has 6 months to maturity. The risk-free rate of interest is 10% per year. The stock is currently trading at $25/share and the delivery price is $24/share. How much is your position worth today (ignore marking to market costs) ? How things would be different if the stock had a dividend of $1per share every six months and was scheduled to go ex-dividend in 3 months?
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