A.4. The 6-month annualized spot rate today is 2.75%. A new futures 6-month contract on Repsol's shares is negotiated with an exercise price of €7. (a) Compute the current spot price of a share of Repsol. (b) Compute the value of two pre-existing futures contracts on Repsol's shares that also have left 6 months until maturity knowing that their respective exercise prices are €6.5 and €8.

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A.4. The 6-month annualized spot rate today is 2.75%. A new futures 6-month contract on Repsol's
shares is negotiated with an exercise price of €7.
(a) Compute the current spot price of a share of Repsol.
(b) Compute the value of two pre-existing futures contracts on Repsol's shares that also have
left 6 months until maturity knowing that their respective exercise prices are €6.5 and
€8.
Transcribed Image Text:A.4. The 6-month annualized spot rate today is 2.75%. A new futures 6-month contract on Repsol's shares is negotiated with an exercise price of €7. (a) Compute the current spot price of a share of Repsol. (b) Compute the value of two pre-existing futures contracts on Repsol's shares that also have left 6 months until maturity knowing that their respective exercise prices are €6.5 and €8.
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