The price of a forward contract on a share is given by F = Soert where S, is the current share price, r is the risk-free rate of interest, and T is the length of the contract. A one-year forward contract on a non-dividend paying share is entered into when the share price is 40 and r = 10%. What is the forward price and the initial value of the forward contract? Six months later, the price of the share is 45 and the risk free rate is still r = 10%. What are the forward price and the value of the forward contract? An asset currently has a price of 10. Suppose that six-months future prices of: 11 10.10 are available. If the risk free rate is r = 6%, show that a risk-free profit can be made in both cases. The price of a forward contract on a share is given by F = Soert where S, is the current share price, r is the risk-free rate of interest, and T is the length of the contract. A one-year forward contract on a non-dividend paying share is entered into when the share price is 40 and r = 10%. What is the forward price and the initial value of the forward contract? Six months later, the price of the share is 45 and the risk free rate is still r = 10%. What are the forward price and the value of the forward contract? An asset currently has a price of 10. Suppose that six-months future prices of: 11 10.10 are available. If the risk free rate is r = 6%, show that a risk-free profit can be made in both cases