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Consider a long forward contract to purchase a stock in 3 months that pays 1 in 1 month time. Assume that the current stock price

Consider a long forward contract to purchase a stock in 3 months that pays 1 in 1 month time. Assume that the current stock price is 40 and the 3-month risk-free interest rate is 5% per annum. Suppose that the forward price is relatively high at 42. What is the arbitrage profit?

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