Question: point ?. Value of a Forward contract at an intermediate time Suppose we hold a forward contract on a stock with expiration 6 months from


point ?. Value of a Forward contract at an intermediate time Suppose we hold a forward contract on a stock with expiration 6 months from now. We entered into this contract 6 months ago so that when we entered into the contractr the expiration was T=1 year. The stock price$ 6 months ago was 50:100. the current stock price is 125 and the current interest rate is r='l [1% compounded semiannually. (rhis is the same rate that prevailed 6 months ago.) What is the current UEIUE' of our forward contract? Please submit your answer in dollars rounded to one decimal place so if your answer is 42.6?8 then you should submit an answer of 42.1
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
