Question

An investor observes that a 6-month futures contract on a non-dividend paying security is currently trading at ₹450. The prevailing annual borrowing rate in the market is 9% per annum (simple interest basis). Assume there are no transaction costs, taxes, or carrying costs and markets are arbitrage-free. Using the cost-of-carry model, what is the current spot price of security?

A ₹430.62
B ₹431.10
C ₹432.00
D ₹435.40
E ₹438.75
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