Value of the forward contract


Problem:

A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $138 and the risk-free interest rate is 9.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-free rate is 9%.

Required:

Question: What is the value of the forward contract?

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Finance Basics: Value of the forward contract
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