ple Choices
(Choose 1 answer)
(24927) The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The annual rate of interest on treasuries is 2.4% (0.2% per month). What annualized rate of interest makes the net payoff zero? (Assume monthly compounding.)
Α. 4.8%
Β. 8.5%
C. 11.2%
D. 13.2%
Q:
43
