Question: Why would the lease rate need to be equal to the continuously compounded risk-free rate to make a futures price equal to the current spot
Why would the lease rate need to be equal to the continuously compounded risk-free rate to make a futures price equal to the current spot price?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
