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Eight months ago, the Zeus Fund entered into a short position in a one - year forward contract on 1 , 2 5 0 shares
Eight months ago, the Zeus Fund entered into a short position in a oneyear forward contract on shares of Cerner Corporation stock at a forward contract price of $ per share. Today, the price of Cerner stock is $ per share and the interest rate for continuous compounding is Cerner stock does not pay dividends.
If the Zeus Fund wanted to exit the contract today, how much should it be willing to pay, or how much should it expect to receive, from its counterparty?
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