A European call and a European put option, each with 6-month maturity and strike price...

90.2K

Verified Solution

Question

Finance

A European call and a European put option, each with 6-month maturity and strike price of $ 105, are trading for C=$23 and P=$14, respectively. What is the price of a 6-month forward contract on the underlying asset, if the risk free rate is 3%?

Provide your answer rounded to two decimals.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students