alleryStart learning →An asset costs 2,000; risk-free rate 6% compounded annually. Two-year forward price?
A2,240.00
B2,360.00
C2,247.20
D2,120.00
Answer & Solution
Correct answer: C. 2,247.20
Forward = 2,000 x 1.06^2 = 2,000 x 1.1236 = 2,247.20.
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