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An investor entered into a long forward contract 2 months ago to buy a stock in 6 months. The contracted delivery price is $40 and
An investor entered into a long forward contract 2 months ago to buy a stock in 6 months. The contracted delivery price is $40 and will be expired in 4 months. The stock just paid a dividend of $1. The current contract price for 4 months forward contract is $43.4. The risk-free interest rate is 10% per annum continuously compounded. What is the value of the long forward contract today? Note: In your answer, (1) only input numerical value with 2 decimal points, and (2) do not input unit or symbol, such as $, km", and "%". For example, if your answer is 22.20 dollar, present your answer as 22.20, but not $22.20
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