The spot price of an investment asset is 43 per unit and, Ask an Expert

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The spot price of an investment asset is $43 per unit and the annual risk-free rate for all maturities (with continuous compounding) is 3%. The asset provides an income of $1.26 per unit at the end of the first and second years. Assuming no arbitrage opportunities exist, what is the forward price on a forward contract that matures in 3 years.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92071879

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