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A short forward contract that was negotiated some time ago will expire in four months and has a delivery price of $35. The current asset
A short forward contract that was negotiated some time ago will expire in four months and has a delivery price of $35. The current asset price is $40 and the storage cost is $2 paid at the end of the contract. The four month risk-free interest rate , with continuous compounding, is 3%. What is the value of the short forward position?
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