Question: A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward
A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the long forward contract? +$2.00 $1.96 +$1.96 $2.00
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