Derivatives Q73

0. Analyst 1: The value of a forward prior to expiration is the value of the asset minus the forward price.
Analyst 2: The value of a forward prior to expiration is the value of the asset minus the present value of the forward price.
Which analyst’s statement is most likely correct?

Answer
Comment
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Option : B
Explanation : The value of a forward contract prior to expiration is the value of the asset minus the present value of the forward price.

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