Question: Suppose that you enter into a six - month forward contract on a non - dividend - paying stock when the stock price is $

Suppose that you enter into a six-month forward contract on a non-dividend-paying stock when the stock price is $132 and the risk-free interest rate (with continuous compounding) is 1.6% per annum. What is the forward price?
The forward price is $Blank 1(keep two-decimal for the price).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!