Question
A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $40 and the risk-free rate of interest is
A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $40 and the risk-free rate of interest is 7% per annum with continuous compounding. (If you are not comfortable using continuous compounding, annual compounding is fine) What is the forward price of the contract?
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
