What is value of your forward contract

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1. Suppose you sell four-month forward contract at $42. Two months later, new forward contracts with similar term are trading for $33. The risk-free rate is 8 percent (not continuously compounded). What is the value of your forward contract? show your work.

2. Suppose Oppenheimer Bank is offering a 30-year mortgage with an EAR of 5.3%. If you plan to borrow $130,000, what will your monthly payment be? (Round monthly EAR to two decimal places, i.e. XX.XX% and round your final answer for the monthly payment to the nearest cent.)

Reference no: EM131868680

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