Question
Satoshi Takada, CFA, takes a long position in a 9-month equity forward contract with a forward price of JPY 1684.20 per share. After four months,
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Satoshi Takada, CFA, takes a long position in a 9-month equity forward contract with a forward price of JPY 1684.20 per share. After four months, the share price has increased to JPY 2087.54 and the annual risk-free rate is currently 1.44%. Based on this information the value of the forward contract to Takada is closest to:
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JPY 0.00
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JPY 413.34
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JPY 433.23
Satoshi Takada, CFA, takes a long position in a 9-month equity forward contract with a forward price of JPY 1684.20 per share. After four months, the share price has increased to JPY 2087.54 and the annual risk-free rate is currently 1.44%. Based on this information the value of the forward contract to Takada is closest to:
-
JPY 0.00
-
JPY 413.34
-
JPY 433.23
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
