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What is the percentage drop of the forward price

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Question: Suppose that the price of stock on 1 April 2000 turns out to be 10% lower than it was on 1 January 2000. Assuming that the risk-free rate is constant at r = 6%, what is the percentage drop of the forward price on 1 April 2000 as compared to that on 1 January 2000 for a forward contract with delivery on 1 October 2000?

Reference no: EM131637930

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