Question: Consider a 2-year forward that was written one year ago (the old 1-year forward), a 1-year forward that was written this morning (the new 1-year
Consider a 2-year forward that was written one year ago (the "old 1-year forward"), a 1-year forward that was written this morning (the "new 1-year forward"), and a 2-year forward that was written this morning (the "new 2-year forward"). If the stock grew at the risk-free rate last year, how much would you be willing to pay for the "old 1-year forward"?
the forward price of the "new 2-year forward"
the forward price of the "new 1-year forward"
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