Question: 4. A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $100 (agreed upon

 4. A short forward contract that was negotiated some time ago

4. A short forward contract that was negotiated some time ago will expire in three months and has a delivery price of $100 (agreed upon price at inception). Today's forward price for a three-month forward contract is $85. The three month risk-free interest rate (with continuous compounding) is 4%. What is today's value of the short forward contract

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