Question
Suppose you buy a one-year forward contract at $80. Five months later, new forward contracts are selling for $70. The risk-free rate is 20 percent
Suppose you buy a one-year forward contract at $80. Five months later, new forward contracts are selling for $70. The risk-free rate is 20 percent (annual rate). What is the value of your contract?
$8.99
$9.27
$8.99
$9.27
$100
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Structured Finance Leveraged Buyouts Project Finance Asset Finance And Securitization
Authors: Charles-Henri Larreur
1st Edition
1119371104, 978-1119371106
