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The forward value at time t for a long forward contract initiated at time O...

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The forward value at time t for a long forward contract initiated at time O is * equal to the spot price at timet. O the present value of the difference in forward prices. the future value of the difference in forward prices. AZ Corp. sold USD10,000,000 against GBP forward at a forward rate of 0.8200 for $1 at Time 0. In the spot market at Time t, $1 is worth 0.7600, and the annually compounded risk-free rates are 1.00% for the British pound and 3.00% for the USD. Assume at Time t the forward contract has one month to expiration. The forward price Ft(/$.T) at Time t will be * :closest to 0.76. O 0.75. O 0.82. O If FO(T) > FV(SO), an arbitrageur * would purchase the forward contract and sell the underlying short O conduct a reverse carry arbitrage strategy. sell the forward contract and purchase the underlying

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