User Account

All Pages

Value of the short forward contract

Assignment Help Finance Basics
Reference no: EM133119078

A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $50. The current forward price for three-month forward contract is $45. The three month risk-free interest rate (with continuous compounding) is 0.1. What to the nearest cent is the value of the short forward contract? Note: The value can be positive or negative.

Reference no: EM133119078

Questions Cloud

Determine the yield to maturity for this bond : Assume that this bond will mature in precisely 10 years, pay coupons semi-annually, and has a par value of $1000. Determine the yield to maturity
Equity-based crowdfunding for a startup firm : What are the alternatives to equity-based crowdfunding for a startup firm?
What the total income tax expense for the year : Pupil Inc. had $300 million in taxable income for the current year. What the total income tax expense for the year
Plan for contingencies : How would you plan for contingencies that may affect the completion of sale? e.g. the seller has removed a large tree from the front yard which was not stipulat
Value of the short forward contract : A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $50. The current forward price for three-mont
Completed as part of the post- settlement recesses : Outline the tasks/activities that you would need to completed as part of the post- settlement recesses.
How much can city farm earn in dollars per year : How much can City Farm earn in dollars per year on short-term investments made possible by the freed-up cash
How ijarah financing can be improved : Provide ONE (1) recommendation/ solution on how Ijarah (Aitab) financing can be improved to be more shariah compliant
Estimating the type of strategy : "You have to be foolish not to sell a call option on stock you own. You don't really lose anything because if the stock is called, you own it and just have to g

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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