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Calculate the value of the forward contract

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Question - A company has entered a short position in a forward contract to lock in a price of $98 for one year. In 5-month time, the market price of the underlying asset has risen to $148 and the interest rate is 6% per annum with continuous compounding. Calculate the value of the forward contract to the company in 5-month time?

Reference no: EM133018358

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