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Assume that we entered into a one-year forward contract with price $300 today. Nine months later, the observed price of the stock is $350 and

Assume that we entered into a one-year forward contract with price $300 today. Nine months later, the observed price of the stock is $350 and the interest rate is 8% per annum. The value of the existing forward contract expiring in three months will be closest to:

A.

49.05.

B.

55.72.

C.

55.72.

D.

49.05.

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