A short forward contract that was negotiated some time ago, Ask an Expert

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A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8%. What is the value of the short forward contract?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91804751

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