Question
Please show your work on this exercise and formulas You are going long on a 50 day contract at F(0,T) = $55. Risk-free rate =
Please show your work on this exercise and formulas
You are going long on a 50 day contract at F(0,T) = $55. Risk-free rate = 0.10. 25 days later, the spot price is $52. What is the value of the forward contract?
3.41
-2.12
2.65
-2.65
-1.82
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
