Find the forward price F of forward contract maturing

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Find the forward price F of a forward contract maturing in 1 year, given that the current price of the underlying stock is 150 and that the 1-year risk-free return on bonds is 18%.

Mike takes a loan of P dollars from a bank today. In return he has to pay back 5, 000at the end of each year for 20 years. Find P if an interest rate 18% of continuous compounding is used.

Reference no: EM13976255

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