A short forward contract on an investment asset that yields 7.2% and was negotiated some time ago will expire in 10 months and has a delivery price of $68. The current spot price of the commodity is $48. The risk-free interest rate (with continuous compounding) is 3.5%. What is the value of the short forward contract.

Answer rating: 100% (QA)

Heres how to calculate the value of the short forward contract 1 Determine the forward price The for... View the full answer