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Assume that we entered into a one-year forward contract with price $300 today. Nine months later, the observed price of the stock is $350 and
Assume that we entered into a one-year forward contract with price $300 today. Nine months later, the observed price of the stock is $350 and the interest rate is 8% per annum. The value of the existing forward contract expiring in three months will be closest to:
A.
49.05.
B.
55.72.
C.
55.72.
D.
49.05.
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