medium · Quantitative Finance derivatives
An equity index trades at S_0 = 4,000 with a risk-free rate r = 5% and a continuous dividend yield q = 2%. A 6-month forward contract is quoted in the market at 4,100.
What is the riskless profit per unit of the index available to an arbitrageur?
- 33.95
- 39.55
- 0.00
- 39.88
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