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You want to buy Microsoft 6 months from now. The current price of Microsoft is $ 4 0 0 per stock. Assume there are no

You want to buy Microsoft

6

months from now. The

current price of Microsoft is $

400

per stock. Assume

there are no dividends. The forward contract lock in a

price of $

390

six months from now. The risk free rate is

6 % .

What should be the price of the forward contract?

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