Question: A one-year long forward contract on Amazon is entered into when its stock price is $1,900 and the continuous compounded interest rate is 2.5%. (Note:
A one-year long forward contract on Amazon is entered into when its stock price is $1,900 and the continuous compounded interest rate is 2.5%. (Note: Does Amazon pay dividends?) a) What are the fair forward price and the initial value of the forward contract?
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