The three-year forward price is $40.50.
Forward price can be defined as the agreed price which a seller gives to the buyer in a forward contract at a specific period of time.
Using this formula
Forward price=S0ert
Where:
r=Risk-free rate=10%
S0=Spot price=$30
T=Time=3 years
Let plug in the formula
Forward price=30×e^(10%×3)
Forward price=30×e^0.3
Forward price =$40.495
Forward price=$40.50 (Approximately)
Inconclusion the three-year forward price is $40.50.
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