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

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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
4
O123
Transcribed Image Text: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 4 O123
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