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A nine-month short forward contract on a non-dividend-paying stock was entered into when the stock price was $120, and the risk-free rate of interest was
A nine-month short forward contract on a non-dividend-paying stock was entered into when the stock price was $120, and the risk-free rate of interest was 6% per annum with continuous compounding. Four months later, the current price of the stock is $137, and the risk-free interest rate is 5%. What is the current value of the forward contract for the position entered? What was the forward price when the contract was enter into? Loss 14.07;125.52 Gain 13.12;124.59 Gain 14.94:124.59 Loss 13.55;125.52
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