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A six month, short forward contract was negotiated three months ago when the spot price of the underlying asset was $400 and the one-year risk-free
A six month, short forward contract was negotiated three months ago when the spot price of the underlying asset was $400 and the one-year risk-free rate of interest was 4 percent per year. The current spot price for the underlying asset is $450 and the three-month risk-free interest rate (with continuous compounding) is 6 percent per year. The current value of the short forward contract is:
Group of answer choices
-48.72
-50.00
+48.00
-48.00
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