Pricing and Valuation of Forward Contracts

What is the value of a forward contract to the long position at the initiation of the contract?

Which formula correctly represents the basic forward price F0(T) for an asset with no costs or benefits?

If an investor holds a long forward position, how is the settlement amount at maturity calculated?

Which of the following best describes the 'Mark-to-Market' (MTM) value of a forward contract?

How do storage costs associated with holding an underlying asset affect the forward price?

In the context of forward pricing, what does 'I' represent in the formula involving (S0 - PV(I) + PV(C))?

Calculate the Forward Price for a 1-year contract given: Spot Price = 100, Risk-Free Rate = 5 percent, No other costs or benefits.

An investor enters a long forward contract with a forward price of 50. At expiration, the spot price is 45. What is the value of the contract to the investor?

What does a '2 x 5 FRA' imply about the timing of the underlying loan?

In a Forward Rate Agreement (FRA), who is the 'Long' position?

If interest rates increase, which party benefits in a Forward Rate Agreement (FRA)?

How is the value of a forward contract calculated during its life (at time t, before maturity T)?

A forward contract was initiated with a price of 110. The current spot price is 130. The remaining time to maturity is 0.4 years and the risk-free rate is 10 percent. What is the approximate value of the contract?

What is 'Bootstrapping' in the context of interest rate forwards?

Which formula represents the interest rate parity for pricing FX Forwards (using continuous compounding as per the provided text)?

What is the relationship between Forward Price (F0) and Spot Price (S0) if the Net Cost of Carry (Benefits - Costs) is positive?

What is the duration of the loan underlying a 3 x 6 FRA?

Given Spot Price = 200, PV of Dividends = 5, PV of Storage Costs = 2, Risk-Free Rate = 0 percent (for simplicity). What is the Forward Price?

What does the term 'Convenience Yield' refer to in forward pricing?

Which of the following describes a 'Synthetic FRA'?

For a Short Forward position, how is the value at expiration (VT) calculated?

If a forward contract is priced correctly at initiation, what should be its Net Present Value (NPV)?

Which factor effectively reduces the Forward Price of an equity index?

What is the primary underlying asset in an Interest Rate Forward?

How is the settlement amount of an FRA typically paid?

If the Spot Price is 150 and the Forward Price is 155, what is the implied relationship?

In the valuation formula Vt = St - F0 / (1+r)^(T-t), what does the term F0 / (1+r)^(T-t) represent?

Calculate the value of a long forward position if Spot = 105, Original Forward Price = 100, Remaining Time = 0 (Expiration).

What happens to the value of a Short Forward position if the spot price of the underlying asset decreases?

Why do FX Forwards use the formula involving e^(rf - rd)T?

What is the key difference between a Forward contract and a Futures contract regarding value realization?

Which instrument provides a hedge against rising interest rates for a borrower?

If a 1-year forward contract on a non-dividend paying stock is priced at 105 and the spot price is 100, what is the implied risk-free rate?

When calculating the value of a forward contract, why is the term (T-t) used in the discount factor?

A 'Short' FRA position is equivalent to:

If the forward price is currently 120 and the original forward price locked in was 110, is the value positive or negative for the long position?

What is the Discount Factor (DF) for a period i given spot rate zi?

In the FRA diagram for a '1 x 3 FRA', when does the borrowing effectively occur?

If a company expects to receive a foreign currency payment in 6 months, how can they hedge the currency risk using forwards?

What is the relationship between forward rates and spot rates used in Bootstrapping?

Which formula is used to convert forward pricing to a value Vt during the contract's life involving benefits (I) and costs (C)?

What is the value of a Forward Rate Agreement at initiation?

If a 2x5 FRA has a rate of 4 percent, and at expiration the 3-month market rate is 5 percent, what is the outcome for the Long position?

What does a negative value for a long forward contract indicate?

How can a synthetic 'Short' forward position be created?

In the pricing of an equity forward, how are dividends typically handled?

If the risk-free rate increases, what happens to the value of an existing Long forward contract (assuming spot price stays constant)?

What is the settlement price of a forward contract usually based on?

Which notation represents the Forward Rate implied between period A and period B?

If a forward contract has a value of 0 at initiation, what can be said about the Forward Price relative to the Spot Price if interest rates are positive and there are no benefits/costs?