A 2-year long forward con

A 2-year long forward con

A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $138 and the risk-free interest rate is 9.3% per annum with continuous compounding. 1 year later, the price of the stock is $146 and the risk-free rate is 9%. What is the value of the forward contract?

%d bloggers like this: