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Leading price of the two-year forward contract

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The current price of an investment asset is $100. This investment asset is expected to generate $5 in exactly one year and no additional income after that. Assuming that the risk-free interest rate for the next two years is 5% per year on an annual compounding basis, the leading price of the two-year forward contract for this investment asset is expected to be $______________________________.

Reference no: EM133072247

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