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The spot price of an investment asset that provides no income is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.

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The spot price of an investment asset that provides no income is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%. What is the three-year forward price? a. Start by identifying the variables given: So= R= T= b. Calculate the futures price today. (answer with 2 decimal places). Suppose that you enter into a 6-month forward contract on a non-dividend-paying stock when the stock price is $20 and the risk-free interest rate (with continuous compounding) is 5% per annum. What is the forward price? a. Start by identifying the variables given: So= R= T= months, on an annualized basis this is (answer with 2 decimal places) b. Calculate the futures price today. (answer with 2 decimal places)

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