Today Walmarts stock is being traded at $66.12. You buy a future contract that delivers...
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Today Walmarts stock is being traded at $66.12. You buy a future contract that delivers Walmarts stocks in 3 months. Contract size of each futures contract is 100 shares. Find out the price of each futures contract assuming 2.9% annual continuous compounding rate.
If you know that the Walmart will pay a dividend of $0.80 per share in month, what will be the price of each futures contract? (To find out the present value of the dividend, you will need to convert Rc to Rm)
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