Multiple Choice
Suppose you buy a one-year forward contract at $65.At expiration,the spot price is $73.The risk-free rate is 10 percent.What is the value of the contract at expiration?
A) $8.00
B) -$8.00
C) $0.00
D) $7.27
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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