A company has entered a short position in a forward contract to lock in a price of $93 for one year. In 7-month time, the market price of the underlying asset has risen to $158 and the interest rate is 6% per annum with continuous compounding. Calculate the value of the forward contract to the company in 7-month time?

Choose the best answer.

a.

None of the other answers provided is the best answer

b.

$ 68.20

c.

$ -59.57

d.

$ 59.57

e.

$ -68.20