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Consider a short forward contract of 1,000,000 euros with a remaining maturity of 5 months. The current spot exchange rate is 1.375 U.S. dollars per

Consider a short forward contract of 1,000,000 euros with a remaining maturity of 5 months. The current spot exchange rate is 1.375 U.S. dollars per Euro, the U.S. domestic risk-free rate of interest (with continuous compounding) is 3% per year, and the European risk-free rate of interest (with continuous compounding) is 5% per year. The delivery price in the previously negotiated forward contract is 1.563 U.S. Dollars per Euro. What is the current value of this short forward contract?

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