Answer : value of the forward contract = $ 10.71
Working Notes for the above answer
We have provided the information as follow
| Particular | Figure |
| So = Spot price | 39.26 |
| T = Time remaining to the maturity | 0.75 |
| r = Risk free rate of return (Componded Continuously) | 6.6 |
| K = Delivery price set in the contract | 30 |
The formulla is as follow
f = S0 – K(1+r)-T
f = 39.26- 30-(0.12×0.75)*6.6
= 10.71
