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Solve the value of the forward to the short position

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Reference no: EM132920551

Problem 1: Previously priced at $35.4, will expire in 200 days. The risk-free rate is 0.3% per annum with continuous compounding. Assuming that one year has 365 days and the current stock price is $42.4 per share. Calculate the value of the forward to the short position?

Choose the best answer.

a. $ -8.01

b. $ -7.06

c. $ 8.01

d. $ 7.06

e. None of the other answers provided is the best answer

Reference no: EM132920551

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