Value of three-year forward contract with delivery price

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Reference no: EM131545787

The spot price of an investment asset that provides an income of $2 at the end of the first year and at the end of the second year is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.

What is the three year forward price?

What is the value of a three-year forward contract with a delivery price of $30?

Reference no: EM131545787

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