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1.The current spot price of a non-dividend paying stock is $65, while the simple interest rate is 4.50 percent per year. Consider a forward contract

1.The current spot price of a non-dividend paying stock is $65, while the simple interest rate is 4.50 percent per year. Consider a forward contract written on this stock with a maturity of 90 days.

1.a)Calculate the forward price.

2.b)What is the value of the contract?

3.c)General Electric wants a 90-day forward contract with the delivery price set at $60. What is

the value of this contract?

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