Question
A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $39. The current forward
A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $39. The current forward price for three-month forward contract is $44. The three month risk-free interest rate (with continuous compounding) is 7%. What is the value of the short forward contract? Please round your answer to two decimal places.
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
9th Canadian Edition
1259271935, 9781259271939
