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2. Suppose you long a three-month forward contract at $35. One month later, new forward contracts with similar terms are trading for $30. The continuously

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2. Suppose you long a three-month forward contract at $35. One month later, new forward contracts with similar terms are trading for $30. The continuously compounded risk-free rate is 10 percent p.a. What is the value of your forward contract? A. $4.96 B. $5.00 C. $4.92 D. $4.55 E. none of the above

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