
Explanation:
Value of the forward contract =
Value =
Value = \`2,551.35 - \
Value = +$79.11$
(Book 3, Module 36.1, LO 36.f)
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Use the following information to answer the next two questions.
A derivatives trader wishes to calculate the price of a nine-month forward contract for which the underlying asset is a stock index with a value of $2,500 and has a continuous dividend yield of 1.5%.
Question 52 of 100
Suppose that the stock index in the previous question moves immediately to $2,580. What is the new value of the forward contract?
A
+$78.11.
B
−$78.11.
C
+$79.11.
D
−$79.11.
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