Question: Question 3 (2 points) Suppose that you enter into a 6-month forward contract on a non-dividend paying stock when the stock price is $30 and
Question 3 (2 points) Suppose that you enter into a 6-month forward contract on a non-dividend paying stock when the stock price is $30 and the risk-free interest rate (with continuous compounding) is 16% per annum. What is the forward price? (Answer to two decimal places.) Your Answer: Your Answer Question 4 (2 points) A forward contract on a non-divided paying stock was entered into on October 19. 2020. It currently has 6 months to maturity. The risk free rate of interest is 9% per annum, the stock price, SO, is $500, and the delivery price, K, is $480. What is the value of the long forward contract? (Answer to two decimal places). Your Answer: Your Answer Question 5 (2 points) Suppose that you enter into a 6-month forward contract on a non-dividend paying stock when the stock price is $30 and the risk-free interest rate (with continuous compounding) is 5% per annum. Three-month later the price of the stock is $35 and the risk free interest rate is still 5%. What is the value of the long forward contact? (Answer to two decimal places.) Your Answer: Your
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