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Suppose Starbucks entered into the long two-year forward position at a delivery price of $22.22. On January 1, 2024, after one year had passed, the
Suppose Starbucks entered into the long two-year forward position at a delivery\ price of $22.22. On January 1, 2024, after one year had passed, the spot price of\ milk had fallen to $16.17 and the cost of storing milk had fallen to 4%. The risk-\ free rate remained at 2%. What was the value of Starbucks long forward position\ with one year remaining on the contract?
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