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ODoherty Industries has a stock price of $26, and is not expected to pay dividends over the next 6 months. The risk free rate is
ODoherty Industries has a stock price of $26, and is not expected to pay dividends over the next 6 months. The risk free rate is 0.25% per month. The forward price for a 6 month forward contract is quoted at $26.43. You go long the forward. When will you profit?
1.Stock price in 6 months is above $26.43
2.Stock price in 6 months is below $26.43
3.Stock price in 6 months is $26.43
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