12. Some time ago, a bank entered a long currency forward for 10 million USD. Under the

terms of the contract, the exchange rate was set to be 0.82 USD per CAD. A client is the

counterparty to this contract.

What is the value of the contract for the client if the contract has 8 months left, the

current exchange rate is 0.79 USD per CAD and the 8-month risk free rates in the US

and Canada are 5% and 5.6% respectively (per annum with continuous

compounding)?