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I am selling my Subaru forester in two years. The current spot price for a used forester is $23,000. The cost for keeping the car
I am selling my Subaru forester in two years. The current spot price for a used forester is $23,000. The cost for keeping the car is about $3,000 (gas, insurance, maintenance and so on) per year. Then what should the fair forward price be, if the risk-free rate is 2%?
$30,171
$27,050
$26,520
$23,929
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