Question: Question 7 (10 points) Listen A short forward contract that was negotiated some time ago will expire in 8-month and has a delivery price of
Question 7 (10 points) Listen A short forward contract that was negotiated some time ago will expire in 8-month and has a delivery price of $42.25. The current forward price for the 8-month forward contract is $42.50. The 8-month risk-free interest rate (with continuous compounding) is 4.65%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
