Suppose you bought a forward on January 1 that matures a year later. The forward price was $214 at that time and the simple interest rate was 7 percent per year. Six months have passed, and the spot price is now $190. The value of your forward contract today is: a. $16.76 b. $3.56 c. 0 d. $16.76 e. None of these answers are correct. ANS: A but how?