Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suppose you bought a forward contract on january 1

Suppose you bought a forward contract on January 1 that matures six months later. The...

80.2K

Verified Solution

Question

Accounting

Suppose you bought a forward contract on January 1 that matures six months

later. The forward price was $220 at the time of purchase, and the continuously compounded interest rate was 8% per year. Three

months have passed, and the spot price is now $150. What is the value of your forward contract today?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the derivative Y=ln(3-2x)

Basic Math
Q

29 Figure shows the circular motion of a particle The radius of the circle the...

Physics
Q

40 4 positive and negative A light inextensible string that goes over a smooth fixed...

Physics
Q

Ge and Si diodes conduct at 0 3 V and 0 7 V respectively if...

Physics
Q

Verify the identity Simplify your answers completely 7 sin t 7 cos t tan t...

Basic Math
Q

Solve, using a proportion.If there are 75 pepperoni on5 large pizzas, how many pepperoniare there...

Basic Math
Q

x 9x 18x x 2

Algebra
Q

SwIrty Lorporation compea the rolowing financial information as of December 31,...

Accounting
Q

1)Grace manufactures and sells miniature digital cameras for $170 each. 1,700 units were sold in...

Accounting
Q

please list all work. For all payroll calculations, use the following tax rates...

Accounting
Q

On January 1, the balance in the Equipment account was $20,506; on December 31, the...

Accounting
Q

Statement Of Owner's Equity Reporting Net Income Betsy Ray started an accounting service on June...

Accounting