You bought a forward sometime ago, and its value today is $6. It is going to mature
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Question:
You bought a forward sometime ago, and its value today is $6. It is going to mature after three more months. Today's spot price is $92, and the continuously compounded interest rate is 10% per annum. What is the delivery price of your forward contract?
Expert Answer:
We can solve for the delivery price of your forward contract using the concept of forward price pari... View the full answer
Related Book For 
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee
Posted Date:
