Question: 06 uestion 14 (2.25 points) A long forward contract that was negotiated some time ago will expire in three months and has a delivery price
06 uestion 14 (2.25 points) A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $42. The current forward price for three month forward contract is $40. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the long forward contract?! +$1.9604 +$1.9506 0-$1.9604 0-$1.9506 Question 15 (2 points) The current value of the index is 100. The risk-free rate of interest is 7% per with continuous compounding, and the dividend yield on a stock index is 23 annum. What is the nine-month futures price
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