A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for a three-month forward contract is $42. The three-month risk-free interest rate with continuous compounding) is 8% per annum. What to the nearest cent) is the value of the short forward contract? _ _ _ _ _ _

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The Answer of A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current forward price for a three-month forward contract is $42. The three-month risk-free interest rate with continuous compounding) is 8% per annum. What to the nearest cent) is the value of the short forward contract? _ _ _ _ _ _

A Short Forward Contract That Was Negotiated Some Time Ago