Question: Help 5. A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $100 and the risk-free rate of

Help 5. A one-year long forward contract on a non-dividend-paying stock

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5. A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $100 and the risk-free rate of interest is 10% per annum with continuous compounding. (1) What are the forward price and the initial value of the forward contract? (2) Six months later, the price of the stock is $107 and the risk-free interest rate is still 10%. What are the forward price and the value of long position in the forward contract

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