13. Byrd Lynn owns a famous Renoir painting that has a current market value of

$5,000,000. It costs Byrd $200,000 annually to insure the painting, payable at the start of the year. Byrd is able to loan the painting to a local art gallery for $300,000 per year, paid at the end of the year. Byrd is considering selling the painting under a futures contract arrangement that calls for delivery one year from today.

If the one-year riskfree rate is 5%, what is the fair value of the futures con tract?