Calculate value of forward contract


Question: Spot value of a Delco company is 50 dollar right now. 10 month continuously compounded risk-free interest rate is 7%. A long forward contract on this non-dividend stock was entered into some time ago with a delivery value of 48 dollar. It has 10 months to maturity. Calculate the value of this forward contract? [Hind: First, find the price of the forward.]

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Finance Basics: Calculate value of forward contract
Reference No:- TGS020259

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