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A forward contract which was previously priced at $37.2 will expire in 200 days. The risk-free rate is 0.3% pa with continuous compounding. Assuming that
A forward contract which was previously priced at $37.2 will expire in 200 days. The risk-free rate is 0.3% pa with continuous compounding. Assuming that 1 year has 365 days and the current stock price is $40.1 per share. Calculate the value of the forward to the short position?
a.$2.96
b.-$2.96
c.-$3.91
d.None of the other answer provided is the best answer.
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