Question
An underlying investment asset XY has a current price of $400. An investment income of $40 is expected in 4 months from now. A forward
An underlying investment asset "XY" has a current price of $400. An investment income of $40 is expected in 4 months from now. A forward contract on "XY" matures in 10 months. Calculate the price of the forward contract assuming a riskfree rate of interest of 3% per year.
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
