Good Afternoon! Can you help explain this derivatives finance question? Thank you! Suppose you buy a 1-year

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Good Afternoon!

Can you help explain this derivatives finance question? Thank you!

Suppose you buy a 1-year forward contract at $65. At expiration, the spot price is $73. The risk free rate is 10%. The value of the contract at expiration is closest to:

A) $0.00

B) $7.27

C) $8.00

Posted Date: May 17, 2024 05:02 PM

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Good Afternoon! Can you help explain this derivatives finance question? Thank you! Suppose you buy a 1-year

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