Question
You bought a forward sometime ago, and its value today is $6. It is going to mature after three more months. Today's spot price is
You bought a forward sometime ago, and its value today is $6. It is going to mature after three more months. Today's spot price is $92, and the continuously compounded interest rate is 10% per annum. What is the delivery price of your forward contract?
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An Introduction to Derivative Securities Financial Markets and Risk Management
Authors: Robert A. Jarrow, Arkadev Chatterjee
1st edition
978-0393912937, 393912930, 393913074, 978-0393920949, 393920941, 978-0393913071
