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anyone know? Three months ago an investor purchased a six-month US Treasury bond forward contract with a notional value of $10,000,000 at a price of
anyone know?
Three months ago an investor purchased a six-month US Treasury bond forward contract with a notional value of $10,000,000 at a price of 150. Assume the current forward price for a contract with three months to maturity is 152, and the risk-free rate is 1.0%. The value of the forward position is: $199,503 $100,000 $200,000 Question 10 (4 points) Assume an asset sells in the spot market for a price of $30. The risk-free rate is 3%, and the forward contract on the asset expires in six months. If the asset pays a dividend of $0.75 and storage costs are $0.50 a year, what is the correct forward price? $31.25 $30.25 $30.19Step by Step Solution
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