Question
A short forward contract on an investment asset that yields 7.7% and was negotiated some time ago will expire in 1 months and has a
A short forward contract on an investment asset that yields 7.7% and was negotiated some time ago will expire in 1 months and has a delivery price of $60. The current spot price of the commodity is $63. The risk-free interest rate (with continuous compounding) is 1.8%. What is the value of the short forward contract?
An investor shorts 178 shares when the share price is $78 and closes out the position 10 months later when the share price is $50. The shares pay a dividend of $7 per share during the 10 months. How much does the investor gain or lose?
Alrajhi Bank plans to pay a dividend of 3 per share both 1 and 7 from today. Alrajhi share price today is 60 SAR and the continuously compounded interest rate is 0.06. What is the price of a 9-month forward contract?
A short forward contract on a commodity that was negotiated some time ago will expire in 3 months and has a delivery price of $40. The current spot price of the commodity is $66. The risk-free interest rate (with continuous compounding) is 2.3%. What is the value of the short forward contract?
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