Question: There are two dates: 0 ( today ) and 1 . The one - year forward price of ( AMZN ) is $ 2 ,

There are two dates: 0(today) and 1. The one-year forward price of (AMZN) is $2,000. AMZN does not pay dividends. Assume there is no arbitrage. Consider forming the following portfolio today: long one share of AMZN and short a one-year risk-free bond with face-value $2,000. What is the price of this portfolio today? (Round to the nearest dollar)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!