Suppose that you enter into a 6-month forward contract on a non-dividend-paying stock when the stock price

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Suppose that you enter into a 6-month forward contract on a non-dividend-paying stock when the stock price is $30 and the risk-free interest rate (with continuous compounding) is 12% per annum. What is the forward price?

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Posted Date: May 25, 2018 01:10 AM

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Suppose that you enter into a 6-month forward contract on a non-dividend-paying stock when the stock price

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The forward contract is an agreement between two parties to buy ... View the full answer

Options Futures and Other Derivatives

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