medium · Quantitative Finance
A stock index is trading at S_0 = 4000 with a continuous dividend yield of q = 0.02.
If the risk-free rate is r = 0.05 and the horizon is T = 0.5 years, what is the no-arbitrage forward price F_0?
- 4060.45
- 4141.62
- 3940.45
- 4101.01
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