Est. Budget: $20.00
I want all the calculations to be clearly shown and question g should also be done. This is because my teacher Never give out answers to our assigments and I will never know the true soluton. Therefore showing me the calculations is important.
In part (a) the no arbitrage price for the November futures is imposed by the August futures. That is, instead of using the spot price we need to use here the price of an earlier futures. Therefore ...