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A two - year long forward contract on a non - dividend - paying stock is entered into when the stock price is $ 3
A twoyear long forward contract on a nondividendpaying stock is entered into when the stock price is $ and the riskfree rate of interest is per annum with continuous compounding.
A What are the forward price?
B Nine months later, the price of the stock is $ and the riskfree interest rate is still What are the forward price and the value of the forward contract Hint: thinking about Kans in part A
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