What is the value of this forward contract what are the


A short forward contract on a non-dividend-paying stock was entered some time ago. It currently has 9 months to maturity. The stock price and the delivery price is $25 and $24 respectively. The risk-free interest rate with continuous compounding is 12% per annum

(a) What is the value of this forward contract?

(b) Three months later, the price of the stock is $28 and the risk-free rate of interest is 9% per annum. What are the forward price and the value of this short position in the forward contract?

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Financial Management: What is the value of this forward contract what are the
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