1) Which of the following is the forward value equal?
The future value of its payoff initiation
PV(expected payoff)
PV(E[F] – S?)
All of the above
2. Forward contract value is always equal to :
Its forward price
Its premium
Zero
None of the above
3) The value of any asset is equal to
The present value of its known future cash flows
The present value of its expected future cash flow
The future value of its known future cash flows
The future value of its expected future cash flows