Suppose you sell a five-month forward contract at $35. One month later, new forward contracts with similar terms are tra
Posted: Wed Apr 06, 2022 9:08 am
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
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