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What is the value of your forward contract

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Problem - You entered into a forward contract on July 1, 2019 to sell 100,000 metric tons of coal at $58 per metric ton on January 1, 2022- You need to value your forward contract on March 1, 2021. The March 1T 2021 coal spot price is $67- Ten-month LIBOR is 1-65%- Storage costs for the next ten months are 4% of the value of the coal (expressed as an annualized ?gure). The convenience yield in the coal market is zero. What is the value of your forward contract (with a positive number indicating an asset and a negative number indicating a liability)?

Reference no: EM132860264

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