Suppose that you are offered a one-year long forward contract on S&R stocks (paying no dividend) at

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Suppose that you are offered a one-year long forward contract on S&R stocks (paying no dividend) at a forward price $1,200.

What is the time-0 value of this deal to you as the buyer? What would make you accept the deal that you are being offered?

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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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Posted Date: Jun 17, 2021 02:45 PM

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Suppose that you are offered a one-year long forward contract on S&R stocks (paying no dividend) at

Question:

Expert Answer:

A forward contract is a customized contract between two parties to buy or sell an asset at a specifi... View the full answer

Microeconomics

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