An asset whose spot price is K100 is put into consideration. There are plans by investor to sell it in one year and the

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An asset whose spot price is K100 is put into consideration.
There are plans by investor to sell it in one year and the investor
is worried that the price may have fallen at the point of time. To
hedge that risk, a forward contract is entered into by the investor
to sell the asset in a years’ time. Assume that the risk-free rate
is 10%.
Required:
a. What is the appropriate price at which this investor can
enter into the contract to sell the asset in one years’ time?
b. After three months into the contract, the price of the
asset is K90. What is the gain or loss realized in the forward
contract? (
c. An assumption is made that five months into the
contract, the spot price of the asset is K107. What is the gain or
loss on the forward contract?
d. Given that at expiration, the price of the asset is K98. What
is the value of the forward contract at expiration? Also indicate
the overall gain or loss to the investor on the whole transaction.
Is this amount more or less than the overall gain or loss from Part
C.?
e. If the main difference between a forward and future contract
is that future is standardized and market traded, how are future
contract superior to forwards?