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

=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?

Please submit your answer in dollars rounded to one decimal place so if your answer is 42.67842.678 then you should submit an answer of 42.742.7.

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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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