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Basic Question 1 of 9

Today you entered a short six-month forward contract to sell a stock at a price of $32 six months from now. The stock is priced at $30 today. The risk-free interest rate is 3%, compounded annually. The value of your forward contract today is ______.

A. zero
B. $0.5
C. $2

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain the difference between the spot and expected future price of an underlying and the cost of carry associated with holding the underlying asset

CFA® 2025 Level I Curriculum, Volume 5, Module 4.