alleryStart learning →With spot 100, a carry cost c of 5% continuous and T = 1, F = S e^(cT) is closest to (e^0.05 = 1.05127):
A105.00
B105.13
C106.00
D100.50
Answer & Solution
Correct answer: B. 105.13
F = 100 x 1.05127 = 105.13.
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