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Basic Question 2 of 3

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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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe the carry forward model without underlying cashflows and with underlying cashflows;

CFA® 2025 Level II Curriculum, Volume 5, Module 31.