Question
Consider a long forward contract to purchase a non-dividend-paying stock in 6 months. Assume that the current price of the stock is GH 50 and
Consider a long forward contract to purchase a non-dividend-paying stock in 6 months. Assume that the current price of the stock is GH 50 and the 6-month risk free interest rate is 7%. What is the fair (correct) price F for the forward contract to purchase at the end of the 6 months given that it is relatively low at GH48 and relatively high at GH56?
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Routledge Handbook Of Financial Technology And Law
Authors: Iris Chiu, Gudula Deipenbrock
1st Edition
0367344149, 978-0367344146
