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Basic Question 0 of 13
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 ______.
B. $0.5
C. $2
A. zero
B. $0.5
C. $2
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I used your notes and passed ... highly recommended!
Lauren
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.