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The following information is available on a forward contract: spot price of the underlying asset is $50, risk-free rate is 6.5%, contract duration is 3
The following information is available on a forward contract: spot price of the underlying asset is $50, risk-free rate is 6.5%, contract duration is 3 years. Forward price of the underlying asset and value of forward at initiation are closest to:
50; 41
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41; 0
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41; 60
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60; 0
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