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A one-year short forward contract on a non-dividend-paying stock is entered into when the stock price is $68.3 and the risk-free rate of interest is

A one-year short forward contract on a non-dividend-paying stock is entered into when the stock price is $68.3 and the risk-free rate of interest is 7% per annum with continuous compounding. The contract is on a share of the stock. Keep four decimal places in your calculation. 1) a. Calculate the forward price of the contract. Answer: 73.252 1) b. What is the value of the contract when it is entered into? Answer: 0
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A one-year short forward contract on a non-dividend-paying stock is entered into when the stock price is $68.3 and the risk-free rate of interest is 7% per annum with continuous compounding. The contract is on a share of the stock. Keep four decimal places in your calculation. 1) a. Calculate the forward price of the contract. Answer: 1) b. What is the value of the contract when it is entered into

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