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CFA Level I Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities question

Derivatives / Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities

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Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities sample question

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Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities

A forward contract on a non-income-producing asset was initiated at a forward price of USD 92.00. With three months remaining to expiration, the asset's spot price is USD 87.50, and the annual risk-free rate is 4.0% with annual compounding. The value of the contract to the short is closest to:

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