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2. Suppose you enter a 3 month forward contract on a non-dividend paying stock. The price of the stock today is $ 25 and the

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2. Suppose you enter a 3 month forward contract on a non-dividend paying stock. The price of the stock today is $ 25 and the risk-free borrowing and lending rate is 6% per annum. The forward price is the strike that makes this contract free to enter (that is Vif" = 0). What is the forward price? A month later the price of the stock is $ 30 and the interest rate is the same. What is the above contract worth at this time

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