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Please work out problem, no excel 4. Consider a 9-month forward contract established at rate of $28. The contract is 3 months into its life.

image text in transcribedPlease work out problem, no excel

4. Consider a 9-month forward contract established at rate of $28. The contract is 3 months into its life. The spot price is $30, the annual risk-free rate is 4 percent, and the underlying makes no cash payments. At month 3, determine: a) the amount at risk of a credit loss; b) which party bears credit risk, long or short

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