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Suppose we hold a forward contract on a stock with expiration 6 months from now. We entered into this contract 5 months ago, so when
Suppose we hold a forward contract on a stock with expiration 6 months from now. We entered into this contract 5 months ago, so when we entered into the contract the expiration was T= 1 year. The stock price 6 months ago was $100 , the current stock price is $125, and the current interest rate is 10% compounded semi-annually (This is the same rate that prevailed 6 months ago). What is the current value of our forward contract
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