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Intro A non-dividend-paying stock is currently worth $77. A forward contract on the stock expires in 0.4 years. The T-bill rate is 5% (continuously
Intro A non-dividend-paying stock is currently worth $77. A forward contract on the stock expires in 0.4 years. The T-bill rate is 5% (continuously compounded) for all maturities. Part 1 What is the forward price today? 78.54 Correct Attempt 1/3 for 10 pts. Part 2 Attempt 2/3 for 6.7 pts. 0.1 years later, the stock has fallen to $70.42. What is the value of the forward contract to the short? 1+ decimals Submit
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