# finance

Suppose we hold a forward contract on a stock with expiration 66

months from now. We entered into this contract 66 months ago so that when we entered into the contract, the expiration was T = 1T=1 year. The stock price\$ 66 months ago was S_0 = 100S
0

=100, the

current stock price is 125125 and the current interest rate is r = 10\%r=10%

compounded semi-annually. (This is the same rate that prevailed 66 months ago.) What is the current value of our forward contract?

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1. Can you please show work for some of the questions you posted, or at least let us know where you are getting stuck? Thanks.

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👨‍🏫
Leo

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