Question
A 4-year long forward contract on a (non-dividend-paying) stock is entered into when the stock price is $200 and the risk-free rate of interest is
A 4-year long forward contract on a (non-dividend-paying) stock is entered into when the stock price is $200 and the risk-free rate of interest is 7% per annum with continuous compounding. What are the forward price and the initial value of the forward contract?
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Financial Management For Nurse Managers Merging The Heart With The Dollar
Authors: J. Michael Leger
5th Edition
1284230937, 9781284230932
