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Suppose there is a forward market for the commodity-X and you sign a long futures contract on it. The forward price of the commodity with
Suppose there is a forward market for the commodity-X and you sign a long futures contract on it. The forward price of the commodity with maturity of 6 months when you sign is $100. Current risk-free rate is 4%. Today, four months later, the spot price of the commodity is $91.50. What is the value of the forward contract you have in hand now?
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