Math  /  Word Problems

QuestionCalculate the forward contract's value after one month, given a forward price of 286 cents/lb, current price 293 cents/lb, and risk-free rate of 5%5\%.

Studdy Solution
Calculate the value of the forward contract.
Valueofforwardcontract=(292.28286)times15,000=$9,420Value\, of\, forward\, contract = (292.28 -286) \\times15,000 = \$9,420The value of the forward contract after one month is \$9,420.

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