Question
A short forward contract on a non-dividend paying stock was entered into some time ago. It currently has 11 months to maturity. The risk-free rate
A short forward contract on a non-dividend paying stock was entered into some time ago. It currently has 11 months to maturity. The risk-free rate with continuous compounding is 3% per annum, the stock price is $30 and the delivery price is $28. Calculate the value of this short forward contract.
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Teaching Public Budgeting And Finance
Authors: Meagan M. Jordan, Bruce D. McDonald III
1st Edition
1032146680, 978-1032146683
