Computing value of short forward contract, Finance Basics

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Computing value of short forward contract

A short forward contract on a nondividendpaying stock was entered into some time ago. It currently has 10 months to maturity. The riskfree rate with continuous compounding is 4% per annum, the stock price is $25 and the delivery price is $24. Calculate the value of this short forward contract.

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Finance Basics: Computing value of short forward contract

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Finance Basics: Computing value of short forward contract

Reference No:- TGS038437

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Sole shareholder of condor corporation

Q : Potential ethics violations and potential role

Q : Graph the supply curve for industry and the demand curve

Q : Relative real interest rates of two countries

Q : Computing value of short forward contract

Q : What is the expected value of decision strategy

Q : Calendar-year taxpayer

Q : Determining flaw in the reasoning

Q : What effect decrease in demand will cause

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Computing value of short forward contract

Reference No:- TGS038437

Recent Questions Asked Finance Basics

Q : Sole shareholder of condor corporation

Q : Potential ethics violations and potential role

Q : Graph the supply curve for industry and the demand curve

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Q : Computing value of short forward contract

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