Question
Interest rates are 4.70% (with continuous compounding). At the start of the year, you entered into 100 long two year forward positions in Ziggurat stock,
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Interest rates are 4.70% (with continuous compounding). At the start of the year, you entered into 100 long two year forward positions in Ziggurat stock, at (forward) price $36.93. It is now 4 months later, and Ziggurat shares are trading at $47.73. Ziggurat does not pay dividends. What are your forward positions worth?
1358.24
-1358.24
998.63
-998.63
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Multinational Finance
Authors: Kirt C. Butler
4th Edition
1405181184, 978-1405181181
