What is the forward price you negotiated at the beginning

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Question 1: You entered into a long forward contract some time ago to buy an asset, and the value of the forward contract today is $6. It is going to mature after three more months. Today's spot price is $76.19, and the continuously compounded interest rate is 10% per annum. What is the forward price you negotiated at the beginning of the contract?

a. $84.27
b. $85.33
c. $87.84
d. $86.15
e. $88.96

 

Reference no: EM132873341

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