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The value of a forward contract that you have been holding for the last six months is INR50 today. It matures in 3 more months.
The value of a forward contract that you have been holding for the last six months is INR50 today. It matures in 3 more months. If today's spot price is INR100 and the underlying interest rate is 5 percent, what was the forward price that you had negotiated when you purchased the contract six months back?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
