A company enters into a forward contract with a bank to sell a foreign currency for K,
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A company enters into a forward contract with a bank to sell a foreign currency for K, at time 7. The exchange rate at time 7 proves to be S (> K). The company asks the bank if it can roll the contract forward until time 7 (> 7) rather than settle at time T. The bank agrees to a new delivery price, Ky. Explain how K; should be calculated.
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