Interest rates are 6.80% (with continuous compounding). At the start of the year, you entered into...
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Interest rates are 6.80% (with continuous compounding). At the start of the year, you entered into 100 short two year forward positions in Ziggurat stock, at (forward) price $40.71. It is now 2 months later, and Ziggurat shares are trading at $31.74. Ziggurat does not pay dividends. What are your forward positions worth? Interest rates are 6.80% (with continuous compounding). At the start of the year, you entered into 100 short two year forward positions in Ziggurat stock, at (forward) price $40.71. It is now 2 months later, and Ziggurat shares are trading at $31.74. Ziggurat does not pay dividends. What are your forward positions worth?
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To calculate the current value of the forward positions we can use the formu... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-1292080505
17th edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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