Suppose you buy a one-year forward contract for 1,000 shares of Alibaba at HKD136 per shares. At

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Suppose you buy a one-year forward contract for 1,000 shares of Alibaba at HKD136 per shares. At expiration, the spot price is HKD96.55. The risk-free rate is 0.3% p.a. What is the value of the contract at expiration?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Posted Date: Apr 22, 2024 05:30 AM

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Suppose you buy a one-year forward contract for 1,000 shares of Alibaba at HKD136 per shares. At

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Answer To find the value of the forward contract at expiration we need to compare the spot price at ... View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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