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A 1-yr long forward contract on a non-dividend paying stock is entered into when the stock price is $48/sh and the risk-free rate of interest
A 1-yr long forward contract on a non-dividend paying stock is entered into when the stock price is $48/sh and the risk-free rate of interest is 10% per annum with continuous compounding. Six months later, the price of the stock is $45/sh and the risk free rate of interest is now 15%. What are the forward price and the value of the forward contract at this point?
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