2. On 1st of January 2020 a trader buys a forward contract on an asset with spot price 35.15. The contract has expiry date 1st of January 2022 and an exercise price of 42. If the asset price goes to 43.00 on the 1st of July 2020, what is the long forward worth on that date? Assume that the annual interest rate applicable is 2%. Explain what we understand by the value of a forward. (10 marks) 2. On 1st of January 2020 a trader buys a forward contract on an asset with spot price 35.15. The contract has expiry date 1st of January 2022 and an exercise price of 42. If the asset price goes to 43.00 on the 1st of July 2020, what is the long forward worth on that date? Assume that the annual interest rate applicable is 2%. Explain what we understand by the value of a forward. (10 marks)