“Value of a Forward contract at an intermediate time”Suppose we hold a forward contract on a stock with expiration 6 months from now. We entered into this contract 6months ago so that when we entered into the contract, the expiration was T=1 year. The stock price$ 6 months ago was ...
At expiration, the value of a forward contract is: A. equal to the market price of the underlying asset. B. always greater than or equal to zero. C. the difference between the contract price and the market value of the underlying asset. 相关知识点: 试题来源: 解析 C 略 反馈 收藏...
Default risk associated with forward contracts can be substantial, yet these financial instruments are widely used to hedge price risk. An objectively priced exit option on the forward contract would help reduce the likelihood of litigation associated with contract default. A method is proposed to ...
During its life, the value of a forward contract is most likely equal to the price of the underlying minus the price of the: A. forward, discounted over the remaining term of the contract. B. forward. C. forward, discounted over the original term of the contract. View answer resolution ...
forward contract的定价问题“Value of a Forward contract at an intermediate time”Suppose we hold a forward contract on a stock with expiration 6 months from now.We entered into this contract 6months ago so that when we entered into the contrac
5.2 The forward price of an asset today is the price at which you would agree to buy or sell the asset at a future time. The value of a forward contract is zero when you first enter into it. As time passes the underlying asset price changes and the value of the contract may become...
Forward contracts are a part of derivatives, it is a tailor made contract between the buyer and the seller of the contract which is executed on future date. It is done through over the counter or off exchange trading where no third party is involved....
C. the present value of the expected future price of the underlying asset. 正确答案:B 分享到: 答案解析: The value of a forward contract on an asset with no cash flows during its term is equal to spot − (forward price) / (1 + Rf)t), the difference between the spot price and ...
How is the fair value of a Forward Contract determined by U.S. GAAP?Question:How is the fair value of a Forward Contract determined by U.S. GAAP? GAAP:The GAAP guidelines assist public companies in producing their financial reports. The guidelines serve as the foundation for a...
正确答案:A 答案解析:If the convenience yield is high, holding the underlying confers large benefits, thus the spot price canexceed the forward price for a forward contract with a value of zero. Based on theformula [1667201704111-image/452.jpg] and an initial value [1667201704111-image/453.jpg...