Calculate the forward prices

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Question

Column A gives you the last market date of the month for 200 months. Columns B and C give you prices for two unknown financial assets, X and Y. Column D gives you the annualized 1-month continuously compounded risk-free rate for each date. (Hint: refer to chapter 4 in the textbook on continuously compounded rates if you need help with them). Assume that the forward contracts expire on the last trading day of each month. Neither asset pays income. Calculate the forward prices for both X and Y.

Reference no: EM133674448

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