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What is the value of the forward contract held

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An investor enters into a forward contract to purchase 100,000 shares of IBM stock in 2 months at prices of $105 per share. After one month, the investor notes that the forward price for the same contract (which now has a one-month maturity) is $103 per share. She also notes that the one-month interest rate is 1 % continuously compounded. What is the value of the forward contract held by the investor?

Reference no: EM131866923

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