Forward from part to the long counter party at maturity

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The current price of a certain stock paying no income is 30. Assume the annually compounded zero rate will be 3% for the next 2 years. (a) Find the current value of a forward contract on the stock if the delivery price is 25 and maturity is in 2 years (b) If the stock has price 35 at maturity, find the value of the forward from part (a) to the long counter party at maturity.

Reference no: EM131837481

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