Six months ago a trader entered into a forward contract to, Ask an Expert

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Six months ago, a trader entered into a forward contract to buy a stock in 1 year and the delivery price was $44.25.

Now, the six-month forward price of the stock is $45.00 and the risk-free interest rate is 10% per year with continuous compounding.

What is the value of the forward contract to the trader?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92822797

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