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Alice and Bob entered into aforward contract some time ago. Alice has the long position, while Bob has the short position.The forward contractwill mature in

Alice and Bob entered into aforward contract some time ago. Alice has the long position, while Bob has the short position.The forward contractwill mature in three months and has a delivery price of $40. The current forward price for thecontract is $42. The three-month risk-free interest rate (with continuous compounding) is 8%. What is the value Bob's position?

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