Suppose that the value of a forward contract that you were holding for the last six months is $50 today.It matures in three more months.If today's spot price is $97 and the underlying simple interest rate is 5 percent per year,what was the forward price negotiated when you purchased the contract six months back?
A) $15.57
B) $38.76
C) $47.59
D) $50.63
E) None of these answers are correct.
Correct Answer:
Verified
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