Question
A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward
A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract?
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Generational Wealth Personal Financial Handbook
Authors: Sherique Dill
1st Edition
1985161222, 978-1985161221
