13. Today (time = 0), a trader enters a short forward contract on 100 shares of Shamrock Motors (SHAM) stock. The forward contract has a maturity of = 1 year. The spot price of SHAM today is $125 per share. The risk-free rate is constant at 3% per year. Assume that the expected (average) rate of return on SHAM is 20% per year and that SHAM does not pay a dividend. All forward prices are determined under no-arbitrage, traders can borrow and lend limitlessly at the risk-free rate. Six months from now, we would expect that, on average, the value of the traders forward position will be:

    a. +$1,142.74

14. b. -$1,125.72

15. c. +$2,386.85

16. d. -$2,351.32