The current futures price of a stock is $15 per share. One month later, when...
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The current futures price of a stock is $15 per share. One month later, when the futures option expires, the futures price could have risen to $16.5 per share or declined to $14 per share. The strike price is $14.5. The risk-free rate is 6%.
What is the cost of futures contract at time zero
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