Question
A few months ago, an investor went long a forward contract to purchase EUR 10,000 at a forward price of USD 1.25 per EUR. The
A few months ago, an investor went long a forward contract to purchase EUR 10,000 at a forward price of USD 1.25 per EUR. The contract still has 9 months to maturity. The current 9-month forward price of Euro is USD 1.20 per EUR, and the 9-month interest rate for USD is 3% per annum (continuously compounded). What is the present value of this forward contract to this investor?
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Finance For Food Towards New Agricultural And Rural Finance
Authors: Doris Köhn
1st Edition
3662568659, 978-3662568651
