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What is the price of the forward today

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Reference no: EM133116024

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(a) A 10-month forward contract on a stock with a price 50. We assume that the risk-free rate of interest (continuously compounded) is 8% per annum for all maturities. What is the price of the forward today?

(b) The current value of the index is 520 and the risk-free rate of interest is 10% per annum. Find the value of a 3-month forward contract.

Reference no: EM133116024

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