Question
The spot price of an investment asset that provides no income is $35.00 and the risk-free rate for all maturities (with continuous compounding) is 10%.
The spot price of an investment asset that provides no income is $35.00 and the risk-free rate for all maturities (with continuous compounding) is 10%. What is the three year forward price? Rounded to the nearest penny.
Group of answer choices
A. 25.93
B. 38.68
C. 702.99
D. 47.25
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
