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Find forward price and value of forward contract

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A one-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $50 and the risk-free rate of interest is 8% per annum with continuous compounding.

-What are the forward price and the initial value of the forward contract?

-Six months later, the price of the stock is $55 and the risk-free interest rate is still 8%. What are the forward price and the value of the forward contract?

Reference no: EM132715609

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