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What is the value of the contract the investor

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An investor enters into a forward contract to buy 5,000 barrels of oil at $80 a barrel in three months. Two months later, suppose that the spot price for oil is $83 a barrel, and the one-month interest rate is 1 % continuously compounded. Assuming that there are no storage costs, what is the value of the contract the investor holds after two months?

Reference no: EM131872181

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