Kizspy | Question: 10
(Choose 1 answer)
(24902) Suppose you buy a one-year forward contract at $65. At expiration, the spot price is $73. The risk-free rate is 10 percent. What is the value of the contract at expiration?
A. $8.00
B. -$8.00
C. $0.00
D. $7.27
E. none of these
