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compounding) is 5.25%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92

compounding) is 5.25%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A short forward contract that was negotiated some time ago will expire in 6-month and has a delivery price of $47.50. The current forward price for the 6-month forward contract is $44.25. The 6-month risk-free interest rate (with continuous compounding) is 5.25%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92 Blank Excel Worksheet Your Answer: Answer
Transcribed Image Text:A short forward contract that was negotiated some time ago will expire in 6-month and has a delivery price of $47.50. The current forward price for the 6-month forward contract is $44.25. The 6-month risk-free interest rate (with continuous compounding) is 5.25%. What is the value of the short forward contract? Answer with two decimal digits accuracy and the correct sign. Example: -11.92 Blank Excel Worksheet Your Answer: Answer
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