Calculate the value of this short forward contract

Assignment Help Business Management
Reference no: EM131203786

A short forward contract on a non-dividend paying stock was entered into some time ago. It currently has 11 months to maturity.The risk-free rate with continuous compounding is 3% per annum, the stock price is $30 and the delivery price is $28. Calculate the value of this short forward contract.

Reference no: EM131203786

Questions Cloud

Provide details about the migration of people from syria : Provide details about the migration of people from Syria since the beginning of its civil war in 2011, including a discussion of the push and pull factors in migration as well as the destinations of the migrants.
Probable justification for each of aspects of the tax law : Discuss the probable justification for each of the following aspects of the tax law
How would you compare the application of mesh analysis : Based on the results of part (a), how would you compare the application of mesh analysis to the branchcurrent method?
The sec is correct in its position to delay convergence : On December 31, 2015, Ms. Levine CPA, your manager and the treasurer of the U.S. division of the pharmaceutical company Meeack Corp. had just finished acquiring the United Kingdom drug company Zulu LLP, and, after utilizing her knowledge of the IFRS,..
Calculate the value of this short forward contract : It currently has 11 months to maturity.The risk-free rate with continuous compounding is 3% per annum, the stock price is $30 and the delivery price is $28. Calculate the value of this short forward contract.
Calculate the value of the forward contract : It currently has 8 months to maturity.The risk-free rate with continuous compounding is 6.6% per annum, the stock price is $39.26 and the delivery price is $30. Calculate the value of the forward contract?
Draw new budget constraint consumer faces under plan : (a) Draw the new budget constraint the consumer faces under plan A. (b) Draw the new budget constraint the consumer faces under plan B.
What is the balance of estimated warranty liability account : On October 29, 2014, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. Prepare jounral entries to record t..
Determine the current through the given resistor : Using mesh analysis, determine the current through the 5-Ω resistor for each network of given figure.- Then determine the voltage Va.

Reviews

Write a Review

Business Management Questions & Answers

  Power to change your organizationas a manager you have the

power to change your organizationas a manager you have the power to change your organizations culture. however changing

  Additional interest in the future periods

In order to obtain the future value of the principal amount, you calculate what the value at the end of the time period will be assuming the initial investment will earn interest, which is reinvested and will earn additional interest in the future..

  Searching for an academic quality website

In this discussion you will be searching for an academic quality website to paraphrase a key idea. You will want to keep the paraphrase handy; plan to use for it your final paper.

  The process of systematically collecting

The process of systematically collecting, analyzing, and reporting financial information is called

  Primary function of companies-shareholder wealth and profit

Synthesize three examples of how organizational leader can contribute to society through his or her leadership role in their organization.

  Compare the three types of operating systems for web servers

Compare the three types of operating systems for Web servers. Cite the advantages and disadvantages of each. Of the three, based on your research, give your opinion on which is the most efficient and state why.

  Organizational culture at wal-martwhat is it about wal-mart

organizational culture at wal-martwhat is it about wal-mart organizational culture that would be appealing to

  What processes and systems might actually stifle innovation

What particular elements of each organization's culture, processes, and management systems and styles work well to support innovation? Why do you think these organizations have been able to capitalize on innovation and intrapreneurship while others..

  Amo theory as an analytical framework

Using AMO theory as an analytical framework, explain strengths and weaknesses this company has in its management of people. Consider both the engineering department and shop-floor workers.

  How serious is the competitive threat to e-harmony

How structurally attractive is the online personals market?

  What steps can you take to obtain unbiased data

We are aware of the ways in which data can be biased, incomplete, misleading, etc., what can you do to eliminate as many of these problems as possible in the information you collect? What Steps Can You Take to Obtain Unbiased Data?

  Determine which new car to buy

Auto Purchase Build a spread sheet that will help you determine which new car to buy. You are specifically interested in determining the annual cost of the car. The factors in determining the cost are:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd