Forward price and value of the forward contract

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Suppose that the spot price of a non-dividend-paying stock is $60, risk-free rate of interest if 5% with continuous compounding. You enter a one-year long forward contract on the stock.

A. What are the forward price and the initial value of the forward contract?

B. Three months later, the price of the stock is $65 and the risk-free interest rate is still 5%. What are the forward price and the value of the forward contract?

Reference no: EM131309985

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