Question
Several months ago, XYZ entered into a long forward contract on an asset with no income. XYZ agreed to pay $30 to seller at maturity.
Several months ago, XYZ entered into a long forward contract on an asset with no income. XYZ agreed to pay $30 to seller at maturity. Today, the contract matures in 3 months. The risk-free rate with continuous compounding is 7.1% per annum, the underlying asset price is $39.30.
Calculate the value of the forward contract.
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
