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CFA Level 2
Derivatives

Forward Price Calculation for Equity Forwards

Hard Forward Pricing And Valuation Equity Forwards

ABC Corp is evaluating a forward contract for its stock, which is currently priced at $100. The annual risk-free interest rate is 5%, and the dividend yield on ABC's stock is 3%. The forward contract will mature in one year. According to the pricing model for equity forwards, what should be the price of the forward contract at maturity?

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