Draw the profit and payoff function

Reference no: EM131926644

Question: The spot price on the S&P 500 is $20,000 and the 1-year future price is $20,609.09. The 1-year risk-free rate is 3% with continuous compounding. Draw the profit and payoff function for this long future. Remember an S&P 500 futures contract is for 250 times the S&P 500.

Reference no: EM131926644

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