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You entered in a two-year long (arbitrage free) forward contract on a Alex&Students stock. You don't expect any dividends in near future. The current price
You entered in a two-year long (arbitrage free) forward contract on a "Alex&Students" stock. You don't expect any dividends in near future. The current price of the stock is $(52.35+729/100). S&P500 index is at 2943+729/10, one year zero coupon Treasury bond is quoted at 98-17, and 2 year zero-coupon Treasury bond is quoted at 96-03, what is the forward price and the initial value of the contract?
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