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Business, 18.03.2021 01:40 chase1869

The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate of interest on treasuries is 4.8% (0.4% per month). What is the difference in the payoffs between a long index investment and a long forward contract investment

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The spot price of the market index is $900. A 3-month forward contract on this index is priced at $9...

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