A 2-year long forward contract on a non-dividend-paying, Ask an Expert

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A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $139 and the risk-free interest rate is 10.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-free rate is 9%. What is the value of the long forward contract?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91260946

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