Investopedia Securities exchange is considering to purchase one-year forward contract with underlaying securities of bond. with maturity greater than expiry of forward contract. The bonds statistics include semi-annually at the coupon rate of 8%, and the face value Of Sl 0(). The market price is $94.6, and last payment of coupon is just made. Based on the risk-free rate of 10%, find the forward price of this bond forward. Also based on the Box Spread strategy develop the arbitrage opportunity if the price increases to $101.84. Also check compare the results of bear spread and box spread and show which strategy has greater profit
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