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ple Choices
(Choose 1 answer)
(27584) The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate of interest on treasuries is 2.4%(0.2% per month). What is the difference in the payoffs between a long index investment and a long forward contract investment? (Assume monthly compounding.)
A. $10.84
B. $24.59
C. $26.40
D. $43.20

Q: 10