Question: 10.2 A long forward contract that was negotiated some time ago will expire in six months and has a delivery price of $42. The current

10.2 A long forward contract that was negotiated some time ago

10.2 A long forward contract that was negotiated some time ago will expire in six months and has a delivery price of $42. The current six- month forward price is $40. The annual continuously compounded risk- free interest rate for a six-month term is 8%. What is the value of the long forward contract? O $2.08 0-$1.92 O $1.92 $2.00 0 - $2.08

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