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A long forward contract on an asset that provides no income was entered into some time ago. It currently has one year remaining to maturity.
A long forward contract on an asset that provides no income was entered into some time ago. It currently has one year remaining to maturity. The risk-free interest rate (with continuous compounding) is 6% per annum. The asset price (i.e., spot price) is $115 and the delivery price is $100. For the long position, what is the value of this forward contract?
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