All of the following data points are needed to determine the fair value of a forward contract (at any point) , EXCEPT
A) The forward rate when the forward contract was entered into.
B) The current forward rate for a contract that matures on the same date as the forward contract entered into.
C) The forward rate for a contract that has the same duration as the forward contract entered into.
D) A discount rate which is typically the company's incremental borrowing rate.
E) A future rate which is typically the company's incremental borrowing rate.
Correct Answer:
Verified
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