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uestion 3 : The Value of A Forward Contract ( 2 / 1 0 ) Suppose a share in HKUST currently trades for $ 1
uestion : The Value of A Forward Contract Suppose a share in HKUST currently trades for $ on Jan st and the risk free interest rate is annual continuously compounded There is a forward contract that allows you to purchase one HKUST share in Jul st
What is the forward price?
What is the value of the forward contract now on Jan st
Suppose after months on Apr st the price of one HKUST share stays at $ Then, on April st what is the forward price of a forward contract with delivery date on Jul st
Following on Apr st what is the value of the original forward contract the one you entered on Jan st
Optional Suppose after months on Apr st the price of one HKUST share increases to $ Then, on April st what is the value of the short position on the original forward contract the one you entered on Jan st
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