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Suppose we hold a forward contract on a stock with expiration 66months from now. We entered into this contract 66 months ago so
1. 1 answer
2. 1,794 views
Suppose the borrowing rate r_B = 10\%rB =10% compounded annually. However, the lending rate (or equivalently, the interest
1. 1 answer
2. 2,289 views
The current price of a stock is $400 per share and it pays no dividends. Assuming a constant interest rate of 8% per year
1. 0 answers
2. 604 views
Suppose the spot rates for 1 and 2 years are s_1 = 6.3\%s1 =6.3% and s_2 = 6.9\%s 2 =6.9% with annual compounding.
1. 1 answer
2. 2,077 views
A major lottery advertises that it pays the winner $10 million. However this prize money is paid at the rate of $500,000 each
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2. 1,167 views