The Spot Price of an Investment Asset That Provides No

question 9

Multiple Choice

The spot price of an investment asset that provides no income is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.What is the three-year forward price?

• A) $40.50
• B) $22.22
• C) $33.00
• D) $33.16

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