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Consider a nine-month forward contract established at rate of $50. Now the contract is three month into its life. The spot price is $49, the
Consider a nine-month forward contract established at rate of $50. Now the contract is three month into its life. The spot price is $49, the annual risk-free rate is 6 percent, and the underlying makes no cash payments. At month 3, what is the amount at risk of a credit loss? What is the short position's potential credit risk at month 3? Group of answer choices A) $0.905; 0 B) $0.905; 0.905 C) $0.436; 0.436 D) $0.436; 0
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