Question
A 10-month short forward contract on a non-dividend-paying stock is entered into when the stock price is $80 and the risk-free rate (with continuous compounding)
A 10-month short forward contract on a non-dividend-paying stock is entered into when the stock price is $80 and the risk-free rate (with continuous compounding) is 6%.`
What are the forward price and the initial value of the forward contract?
four months later, the price of the stock is $70 and the risk-free rate is still 6%. What are the forward price and the value of the forward contract?
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Bitcoin Technical Innovations From The Trenches
Authors: Sjors Provoost
1st Edition
9090360425, 978-9090360423
