A long position in a forward contract that was negotiated, Ask an Expert

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A long position in a forward contract that was negotiated some time ago will expire in three months and has a delivery price of $33. The current forward price for three-month forward contracts (on the same asset and with the same expiration date as your original contract) is $29. The three-month risk-free interest rate (with continuous compounding) is 5.84% per year. What is the value of a long position in the forward contract?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92071884

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