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selling for $100 and the risk-free rate of interest is 7% per year with continuous compounding for all maturities. a. What are the forward price

selling for $100 and the risk-free rate of interest is 7% per year with continuous compounding for all maturities. a. What are the forward price and the initial value of the forward contract? The forward price is (sample answer: $75.50 ) and the initial value is sample ansv $75.50) (sample answer: $75.50 ) and the value of the futures posiiton is (sample answer: +$5.50; or $5.50 )

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