Consider a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded

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Consider a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded risk-free interest rate is 2.5%. The forward price is $45.

By how much will the long forward increase in value as the underlying asset's market price increases from $52 to $53?

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Jul 10, 2023 06:48 AM

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Consider a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded

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Introduction To Corporate Finance

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