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Correct answer to the question is 20. F_o= 100*(1+.1/2)^2=110.25 ....forward price at time 0(future value of 100 stock at time t=1 yr) F_t=125*(1+.1/2)=131.25 .....forward price at time t ( future value of 125 at time t=1/2yr down the line) d(t,T)=1/(1+.1/2)=.9523 f_t=(F_t-F_o)*d(t,T)=20



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