A one-year long forward contract on a non-dividend-paying stock is entered into in January when the stock price is $42 and the risk-free rate of interest is 10% per annum with continuous compounding. Six months later, in June, the price of the stock is $35 and the risk-free interest rate is still 10%. What is the forward price?
Answers: 2
Another question on Business
Business, 21.06.2019 20:30
The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized byanswers: process innovations.product manufacturing.product innovation.process manufacturing.
Answers: 1
Business, 22.06.2019 01:50
Which value describes the desire to be one’s own boss? a. autonomy b. status c. security d. entrepreneurship
Answers: 2
Business, 22.06.2019 09:40
Salt corporation's contribution margin ratio is 78% and its fixed monthly expenses are $30,000. assume that the company's sales for may are expected to be $89,000. required: estimate the company's net operating income for may, assuming that the fixed monthly expenses do not change.
Answers: 1
You know the right answer?
A one-year long forward contract on a non-dividend-paying stock is entered into in January when the...
Questions
Computers and Technology, 03.08.2021 20:30
Social Studies, 03.08.2021 20:30
Mathematics, 03.08.2021 20:30
Mathematics, 03.08.2021 20:30
Computers and Technology, 03.08.2021 20:30
Mathematics, 03.08.2021 20:30
Computers and Technology, 03.08.2021 20:30
