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The easiest way to think of this is as follows: Settlement Price - Price at which the exchange margins all accounts for those options. Closing Price - Mid/Bid/Ask of Active Market at the exchanges last trade time. E.g. for TY Contracts this is at 5pm EST vs. a Settle Time of 3pm EST. Last Trade Price - Not all options trade every day. This is the price ...


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We consider the forward value, which can be employed to estimate the equity value. Let $T_1=0.5$ be the dividend payment time, and $T=1$. Moreover, let $r_1=5\,\%$ be the annualized interest rate to $T_1$, $r=6\,\%$ be the interest rate to $T$, and $d=5$ be the dividend payment. Then, the forward value, under the risk-neutral measure with the deterministic ...


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The relationship between interest rates and equity prices being at best unstable and weak, I'll assume that the level of interest rate is irrelevant here. So the answer to your question (price of the equity in a year) is 95, everything else being equal. Of course it's unlikely that the equity will actually price at 95 in a year due to market movements, but ...



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