Question: Suppose you buy a one year forward contract at $65. At expiration, the spot price is $73 and the risk free rate is 10%. What
Suppose you buy a one year forward contract at $65. At expiration, the spot price is $73 and the risk free rate is 10%. What is the value of the contract at expiration?
A) 8.00
B) - 8.00
C) 0
D) 7.27
Step by Step Solution
3.57 Rating (154 Votes )
There are 3 Steps involved in it
a 800 positive Since the questions concerns on value at expi... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
1362-B-C-F-C-S(1164).docx
120 KBs Word File
