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CONSIDER AN ASSET WITH A PRICE OF R245. A FORWARD CONTRACT ON THIS ASSET EXPIRES IN SIX MONTHS. THE RISK-FREE INTEREST RATE IS 5.0% (DISCRETE

CONSIDER AN ASSET WITH A PRICE OF R245. A FORWARD CONTRACT ON THIS ASSET EXPIRES IN SIX MONTHS. THE RISK-FREE INTEREST RATE IS 5.0% (DISCRETE COMPOUNDING). FOUR MONTHS AFTER YOU BOUGHT THE FORWARD CONTRACT, THE PRICE INCREASED TO R265 WHILE THE RISK-FREE INTEREST RATE REMAINED THE SAME.

Calculate the PRICE and VALUE of this forward contract.

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