A 6 month, short forward contract was negotiated 3 months ago when the spot price of the underlying asset was $400 and the risk-free rate of interest was 4% per year. The current spot price of the underlying is $450 and the 3- month risk-free rate (with continuous compounding) is 3% per year. The current value of the short forward contract is: O-44.97 O-43.97 O-51.99 O+48.00

A contract requires lease payments of $800 at the beginning of every month for 6 years. a. What is the present value of the contract if the lease rate is 3.50% compounded annually?   Round to the nearest cent b. What is the present value of the contract if the lease rate is 3.50% compounded monthly? Give typing answer with explanation and conclusion

A contract requires lease payments of $700 at the beginning of every month for 4 years. a. what is the present value of the contract if the lease rate is 6.39% compounded annually? b .what is the present valaue of the contract if the lease rate is 6.39 % compounded daily? [ i need a and b]

A contract requires lease payments of $700 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 3.25% compounded annually?   Round to the nearest cent b. What is the present value of the contract if the lease rate is 3.25% compounded monthly?

a. On January 1st, 2021, an investor enters into a 9-month forward contract on an asset. In February, April, June, and September, dividends are paid on the asset at a rate of 3%. In other months, dividends are paid at a rate of 2%. All dividend yields are expressed in semiannual compounding. The risk-free rate of interest over the period is 8% per annum with continuous compounding and the asset is worth $45.00 at contract initiation. What is the no-arbitrage price of the forward contract? b. What is the Convenience Yield and what does a higher or lower convenience yield reflect? c. Coming out of the COVID-19 pandemic and considering the Russia-Ukraine war, would you expect the convenience yield to lead to a normal or inverted market for oil futures prices? Explain NEED ANSWERS PLEASE

5) A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $50. The current forward price for three-month forward contract is $52 whereas the spot price is 50.97. The three month risk-free interest rate (with continuous compounding) is 8%. What to the nearest cent is the value of the long forward contract?

Consider a 12-month forward contract written on USDTRY. The current spot price is 8.2900 TRY per USD. 12 -month continuously compounded borrowing and lending risk free interest rates are 1.572% and 18.942% per annum for USD and TRY, respectively. What is the correct price of this forward contract at the inception? please answer fast i give upvote

You enter in a long position in a 6x12 FRA at a LIBOR rate of 3.00% and a nominal value of $10M. (a) When does this FRA expire in months? (b) Suppose, at maturity, the 6-month LIBOR rate is 3.5%. What is your payoff on that FRA? Note you should calculate this value at the maturity of the FRA, which is month 6.

Consider a 5-year lease for a $400,000 bottling machine, with a residual market value of $120,000 at the end of 5 years. If the risk-free interest rate is 5.4% APR with monthly compounding, compute the monthly lease payment in a perfect market for the following leases: a. A fair market value lease. b. A $1.00 out lease. c. A fixed price lease with an $71,000 final price. a. A fair market value lease. The present value of the lease payments is $ A fair market value lease would be $ (Round to the nearest dollar.) (Round to the nearest dollar.) b. A $1.00 out lease. A $1.00 out lease would be $ (Round to the nearest dollar.) c. A fixed price lease with an $71,000 final price. The present value of the lease payments is $ (Round to the nearest dollar.) A fixed price lease with an $71,000 final price would be $. (Round to the nearest dollar.)

A contract has been signed to lease a building at P30, 000 per year with an annual increase of P1, 000 for 5 years. Payments are to be made at the end of each year from now. The prevailing interest rate is 7%. What is the lump sum paid today would be equivalent to the 5-year lease payment plan? whats the correct answer a. P130, 652.59 b. P142, 470.28 c. P137.952.69 d. P157, 609.38