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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 happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

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

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