Suppose you sell a five-month forward contract at $35. One month later, new forward contracts with similar terms are tra

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answerhappygod
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Suppose you sell a five-month forward contract at $35. One month later, new forward contracts with similar terms are tra

Post by answerhappygod »

Suppose you sell a five-month forward contract at $35. One month
later, new forward contracts with similar terms are trading for
$30. The continuously compounded risk-free rate is
4.83 percent. What is the value of your forward contract?
1) 4.96
2) 5.00
3) 4.92
4) 4.55
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