What is forward price, What is forward price? Six month later the price of the stock is, Finance Basics

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What is forward price

A one year long forward contract on a non dividend paying stock is entered into when the stock price is $40 and the risk free interest rate is 10% with continuous compounding

a) What is forward price?

b) Six month later the price of the stock is $45 and risk free interest rate is still same. What are the forward prices and the value of the forward contract?

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Finance Basics: What is forward price

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Finance Basics: What is forward price

Reference No:- TGS039005

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Recent Questions Asked Finance Basics

Q : What general principle or rule to specify

Q : Determining after-tax profit of firm

Q : Leslie gross estate for federal estate tax purpose

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: What is forward price

Reference No:- TGS039005

Recent Questions Asked Finance Basics

Q : What general principle or rule to specify

Q : Determining after-tax profit of firm

Q : Leslie gross estate for federal estate tax purpose

Q : Compute nominal gdp in the base year and later year

Q : What is forward price

Q : How much money will you invest in stock x and stock y

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Q : Show the consequences of the policy on a new graph

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