A stock index currently has a spot price of $1,400. The risk-free rate is 7%,...
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Finance
A stock index currently has a spot price of $1,400. The risk-free rate is 7%, and the index pays a continuous dividend of 9%. To create a synthetic 11-month forward contract, you would need to borrow enough to purchase ______ units of the index.
a.
1.0663
b.
0.9378
c.
0.9208
d.
0.9818
e.
1.0185
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