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
Section: Chapter Questions
Problem 1PS
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Need typed answer .Please give answer within 45 minutes

Transcribed Image Text:7.
You are given the following information about the S&P500 index:
Current price = $1000
Risk-free rate = 4% convertible semiannually
Price for 6-month options:
Strike
Call
$950
1000
$1020
$1050
Put
$51.777
$74.201
$84.470
$101.214
$120.405
$93.809
$84.470
$71.802
What is the forward price for a true 6-month forward contract?
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