Question
The underlying asset under a 9-month forward contract is a non-dividend-paying stock, which is currently priced at $80. The 9-month interest rate with continuous compounding
The underlying asset under a 9-month forward contract is a non-dividend-paying stock, which is currently priced at $80. The 9-month interest rate with continuous compounding is 5.5% per annum. This forward is currently selling at the market price of $83. Which of the following statements is most accurate?
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Authors: Tom Cromwell
1st Edition
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