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Four months ago, Atlas Partners entered into a long position in a one-year forward contract on 2,000 shares of Repligen stock at a forward contract price of $38 per share. Atlas Partners has decided to exit its forward contract immediately instead of holding the contract until expiration. The current price of Repligen stock is $42.50 per share, the interest rate for continuous compounding is 2%, and Repligen stock does not pay dividends. What trade(s) should Atlas do to exit the contract immediately? After doing the trade(s), how much cash does Atlas receive or pay?

Financial Management, Finance

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