How do I do this one? I'm assuming it's not as simple as "the initial value is just $50 since thats what the stock sells at"
2026-04-02 00:10:55.1775088655
Forward contracts
95 Views Asked by Bumbble Comm https://math.techqa.club/user/bumbble-comm/detail At
1
There are 1 best solutions below
Related Questions in FINANCE
- Compute the net present value of this project in dependance of the interest rate p.
- Maximizing profit when demand is a power function
- How do I calculate if 2 stocks are negatively correlated?
- Why does the least risky portfolio have large weight on the eigenvectors with small eigenvalues?
- FM Actuary question, comparing interest rate and Discount rate
- Monthly effective interest rate to 6-month effective interest rate
- Annual interest rate compounded monthly to monthly effective interest rate
- Withdrawing monthly from a bank for 40 years
- PMT equation result
- Fair value of European Call
Related Questions in ECONOMICS
- Total savings from monthly deposits
- Calculus problem from a book of economics.
- a risk lover agent behave as if risk natural.
- Changes in the mean absolute difference (relating to the Gini coefficient)
- Absurd differential in first order condition
- FM Actuary question, comparing interest rate and Discount rate
- How do I solve for the selling price?
- Stochastic Dynamic Programming: Deriving the Steady-State for a Lottery
- A loan is to be repaid quarterly for five years that will start at the end of two years. If interest rate is $6$%..
- A cash loan is to be repaid by paying $13500$ quarterly for three years starting at the end of four years. If the interest rate is $12$%
Trending Questions
- Induction on the number of equations
- How to convince a math teacher of this simple and obvious fact?
- Find $E[XY|Y+Z=1 ]$
- Refuting the Anti-Cantor Cranks
- What are imaginary numbers?
- Determine the adjoint of $\tilde Q(x)$ for $\tilde Q(x)u:=(Qu)(x)$ where $Q:U→L^2(Ω,ℝ^d$ is a Hilbert-Schmidt operator and $U$ is a Hilbert space
- Why does this innovative method of subtraction from a third grader always work?
- How do we know that the number $1$ is not equal to the number $-1$?
- What are the Implications of having VΩ as a model for a theory?
- Defining a Galois Field based on primitive element versus polynomial?
- Can't find the relationship between two columns of numbers. Please Help
- Is computer science a branch of mathematics?
- Is there a bijection of $\mathbb{R}^n$ with itself such that the forward map is connected but the inverse is not?
- Identification of a quadrilateral as a trapezoid, rectangle, or square
- Generator of inertia group in function field extension
Popular # Hahtags
second-order-logic
numerical-methods
puzzle
logic
probability
number-theory
winding-number
real-analysis
integration
calculus
complex-analysis
sequences-and-series
proof-writing
set-theory
functions
homotopy-theory
elementary-number-theory
ordinary-differential-equations
circles
derivatives
game-theory
definite-integrals
elementary-set-theory
limits
multivariable-calculus
geometry
algebraic-number-theory
proof-verification
partial-derivative
algebra-precalculus
Popular Questions
- What is the integral of 1/x?
- How many squares actually ARE in this picture? Is this a trick question with no right answer?
- Is a matrix multiplied with its transpose something special?
- What is the difference between independent and mutually exclusive events?
- Visually stunning math concepts which are easy to explain
- taylor series of $\ln(1+x)$?
- How to tell if a set of vectors spans a space?
- Calculus question taking derivative to find horizontal tangent line
- How to determine if a function is one-to-one?
- Determine if vectors are linearly independent
- What does it mean to have a determinant equal to zero?
- Is this Batman equation for real?
- How to find perpendicular vector to another vector?
- How to find mean and median from histogram
- How many sides does a circle have?
You basically buy the stock without the intervening dividends 6 months from now. Subtract from the current value of 50 the present values of the dividends, to get the 'naked' current value, then compute the future value of that 5 months from now. The other possible gotcha is the way you transform the risk free rate - but for a problem it's probably just given in the exponential form.