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A one - year long forward contract on a non - dividend - paying stock is entered into when the stock price is $ 3
A oneyear long forward contract on a nondividendpaying stock is entered into when the stock price is $ and the riskfree rate of interest is per annum with continuous compounding.
a What are the forward price and the initial value of the forward contract?
b Six months later, the price of the stock is $ and the riskfree interest rate is till What are the forward price and the value of the forward contract?
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