The current price of the HD stock is $32 and the annualized 6 month spot rate is 1 2 What is the fair price of a 6 month futures contract on 700 shares of HD if the HD stock pays a $0 64 dividend just before the futures' maturity (Hint Since the maturity is 6 months and the provided rate is annual...

To calculate the fair price of a futures contract you can use t ...

The current price of the HD stock is $32 and the annualized 6-month spot rate is...

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Investment Analysis and Portfolio Management

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