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Suppose You Sell a Three-Month Forward Contract at $35

Question 19

Multiple Choice

Suppose you sell a three-month forward contract at $35.One month later,new forward contracts are selling for $30.The risk-free rate is 10 percent.What is the value of your contract?


A) $4.96
B) $5.00
C) $4.92
D) $4.55
E) none of the above

Correct Answer:

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