Suppose that you enter into a 6-month forward contract on a non-dividend-paying stock when the stock price is $30 and the risk-free interest rate (with continuous compounding) is 5% per annum. What is the forward price

Forward price = $30.7595

Explanation:

The forward price is a future predetermined price for a commodity, asset, or currency based on agreement between parties to a forward contract.

The forward contract is an agreement to sell between parties to buy or sell at an agreed price at some time in the future.

Time (t) = 6 months = 0.5 years

Spot price (s) = $30

Risk free interest rate (r) = 5%

Forward price = s * e^rt

Forward price = 30 * (e^0.05*0.5)

Forward price = 30 * 1.025315

Forward price = $30.7595