Question
Suppose you buy a one-year forward contract at $40. Eight months later, new forward contracts are selling for $50. The risk-free rate is 10 percent
Suppose you buy a one-year forward contract at $40. Eight months later, new forward contracts are selling for $50. The risk-free rate is 10 percent (annual rate). What is the value of your contract?
| $9.24 | ||
| $9.38 | ||
| $9.53 | ||
| $9.69 |
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Finance Plain And Simple
Authors: Sebastian Nokes
1st Edition
0273731297, 978-0273731290
