subject
Business, 25.06.2020 02:01 kel3194

Value of a Forward contract at an intermediate time Suppose we hold a forward contract on a stock with expiration 6 months from now. We entered into this contract 6 months ago so that when we entered into the contract, the expiration was T=1 year. The stock price \$ 6 months ago was S0=100, the current stock price is 125 and the current interest rate is r=10% compounded semi-annually. (This is the same rate that prevailed 6 months ago.) What is the current value of our forward contract?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 13:50
Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal.b) rental rates in france will increase.c) wages in france will decrease.d) rental rates in portugal will increase.
Answers: 2
question
Business, 22.06.2019 20:40
Owns a machine that can produce two specialized products. production time for product tlx is two units per hour and for product mtv is four units per hour. the machine’s capacity is 2,100 hours per year. both products are sold to a single customer who has agreed to buy all of the company’s output up to a maximum of 3,570 units of product tlx and 1,610 units of product mtv. selling prices and variable costs per unit to produce the products follow. product tlx product mtv selling price per unit $ 11.50 $ 6.90 variable costs per unit 3.45 4.14 determine the company's most profitable sales mix and the contribution margin that results from that sales mix.
Answers: 3
question
Business, 23.06.2019 00:30
Three years ago, the city of recker committed to build a park and music venue by the river. it was expected to cost $2.5 million and be paid for from an additional meals tax in the community. the residents pushed back. local restaurants suffered as people ate out less or patronized restaurants in neighboring communities. the project has stalled, but the town council kept pushing it on. this spring, a flood devastated the venue. the town council appears to have suffered from bias
Answers: 3
question
Business, 23.06.2019 12:00
How might non-industrialized countries be impacted by the foreign exchange market?
Answers: 3
You know the right answer?
Value of a Forward contract at an intermediate time Suppose we hold a forward contract on a stock wi...
Questions
question
Mathematics, 08.01.2021 01:00
question
Biology, 08.01.2021 01:00
question
History, 08.01.2021 01:00
question
Physics, 08.01.2021 01:00
question
English, 08.01.2021 01:00
question
Mathematics, 08.01.2021 01:00
question
English, 08.01.2021 01:00
Questions on the website: 13722367