Question: plz answer all boxes Suppose a stock index has a current level (SO) at $100. The interest rate is 5% (continuous compounding). The stock index
plz answer all boxes
"Suppose a stock index has a current level (SO) at $100. The interest rate is 5% (continuous compounding). The stock index has a dividend yield of 2% per year (continuous compounding). What is the fair 2.year forward price on the index? (round to 2 decimals) Suppose you have a portfolio that has 3 long forward contracts on the index with T-2 and a delivery price (K) of 5100, what is the current value of your portfolio? (round to integer) What is the current value if the delivery price is $1207
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