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q3 A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current
q3 A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for the three-month forward contract is $42.50. The three-month risk-free interest rate (with continuous compounding) is 8% per annum. What is the value of the long forward contract?
Select one:
-$2.55
+$2.55
+$2.45
-$2.45
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