Question: Consdier a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded risk-free interest rate is 2.5%. The forward price

Consdier a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded risk-free interest rate is 2.5%. The forward price is $45. By how much will the long forward increase in value as the underlying asset's market price increases from $52 to $53?

A) $1 B) 0 C) $1.09 D) None of the the answers

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