A 6 month, short forward contract was negotiated 3 months ago when the spot price of...
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A 6 month, short forward contract was negotiated 3 months ago when the spot price of the underlying asset was $400 and the risk-free rate of interest was 4 % per year. The current spot price of the underlying is $450 and the 3- month risk-free rate (with continuous compounding) is 3% per year. The current value of the short forward contract is: O -44.97 O -43.97 O-51.99 +48.00 A 6 month, short forward contract was negotiated 3 months ago when the spot price of the underlying asset was $400 and the risk-free rate of interest was 4 % per year. The current spot price of the underlying is $450 and the 3- month risk-free rate (with continuous compounding) is 3% per year. The current value of the short forward contract is: O -44.97 O -43.97 O-51.99 +48.00
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