Business, 15.04.2020 17:30 djennings8055

A SHORT forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract?

a. +$2.00
b. -$2.00
c. +$1.96
d. -$1.96

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A SHORT forward contract that was negotiated some time ago will expire in three months and has a del...

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