Question: Interest rates are 4.00% (with continuous compounding). At the start of the year, you entered into 100 short two year forward positions in Ziggurat stock,

Interest rates are 4.00% (with continuous compounding). At the start of

Interest rates are 4.00% (with continuous compounding). At the start of the year, you entered into 100 short two year forward positions in Ziggurat stock, at (forward) price $49.77. It is now 4 months later, and Ziggurat shares are trading at $45.34. Ziggurat does not pay dividends. What are your forward positions worth? 122.02414.43122.02414.43

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