Question: 12. A short forward contract that was negotiated some time ago will expire in six months and has a delivery price of $40. The current

12. A short forward contract that was negotiated some time ago will expire in six 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%. What is the value of the short forward contract? (round the answer two digits after decimal)

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