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 T. The exchange rate at time Ti proves to be S (> K). The company asks the bank if it can roll the contract forward until time T (> T) rather than settle at time T. The bank agrees to a new delivery price, K2. Explain how K should be calculated.
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