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A long forward contract on an investment asset that an income of yields 7.7% and costs 3.7% to store was negotiated some time ago will
A long forward contract on an investment asset that an income of yields 7.7% and costs 3.7% to store was negotiated some time ago will expire in 1 months and has a delivery price of $66. The current spot price of the asset is $46. The risk-free interest rate (with continuous compounding) is 1.4%. What is the value of the long forward contract?
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