How to pricing the future contract over times. For example the spot price at t=0 is $1050, risk free rate is 7%, time to maturity is 20/52( it will change each week) Dividend yield is 5%. the storage cost is 1% weekspot Future price Price(Vanilla) dividend 1050 1057 1045 1049 1059 Future price receives 1 2 3 4

How to pricing the future contract over times. For example the spot price at t=0 is $1050, risk free rate is 7%, time to maturity is 20/52( it will change each week) Dividend yield is 5%. the storage cost is 1% weekspot Future price Price(Vanilla) dividend 1050 1057 1045 1049 1059 Future price receives 1 2 3 4

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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