Which equation is used to define the futures price?
A) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / € ) } = \frac { \left( 1 + i _ { \$ } \right) } { \left( 1 + i _ { € } \right) }$

B) $F _ { 1 } = \frac { C _ { u T } - C _ { d T } } { S _ { 0 } ( u - d ) }$
C) $F _ { 1 } = \frac { \ln ( F / E ) + .5 \sigma ^ { 2 } T } { \sigma \sqrt { T } }$
D) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / \epsilon ) } = \frac { \left( 1 + i _ { € } \right) } { \left( 1 + i _ { \$ } \right) }$

E) $q = \frac { F _ { 1 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) } { u \times S _ { 0 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) }$

Question

Which equation is used to define the futures price?
A) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / € ) } = \frac { \left( 1 + i _ { \$ } \right) } { \left( 1 + i _ { € } \right) }$

B) $F _ { 1 } = \frac { C _ { u T } - C _ { d T } } { S _ { 0 } ( u - d ) }$
C) $F _ { 1 } = \frac { \ln ( F / E ) + .5 \sigma ^ { 2 } T } { \sigma \sqrt { T } }$
D) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / \epsilon ) } = \frac { \left( 1 + i _ { € } \right) } { \left( 1 + i _ { \$ } \right) }$

E) $q = \frac { F _ { 1 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) } { u \times S _ { 0 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) }$

Quizplus · Accepted Answer

The Answer of Which equation is used to define the futures price?
A) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / € ) } = \frac { \left( 1 + i _ { \$ } \right) } { \left( 1 + i _ { € } \right) }$

B) $F _ { 1 } = \frac { C _ { u T } - C _ { d T } } { S _ { 0 } ( u - d ) }$
C) $F _ { 1 } = \frac { \ln ( F / E ) + .5 \sigma ^ { 2 } T } { \sigma \sqrt { T } }$
D) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / \epsilon ) } = \frac { \left( 1 + i _ { € } \right) } { \left( 1 + i _ { \$ } \right) }$

E) $q = \frac { F _ { 1 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) } { u \times S _ { 0 } ( \$ / € ) - d \times S _ { 0 } ( \$ / € ) }$

Which Equation Is Used to Define the Futures Price? A) F1($/€)S0($/€)=(1+i$)(1+i€)\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / € ) } = \frac { \left( 1 + i _ { \$ } \right) } { \left( 1 + i _ { € } \right) }S0​($/€)F1​($/€)​=(1+i€​)(1+i$​)​

Which Equation Is Used to Define the Futures Price?
A) $\frac { F _ { 1 } ( \$ / € ) } { S _ { 0 } ( \$ / € ) } = \frac { \left( 1 + i _ { \$ } \right) } { \left( 1 + i _ { € } \right) }$