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

A forward contract that was negotiated some time ago will expire

A 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 three-month forward contract is $42. The three month risk-free interest rate (with continuous compounding) is 8% per annum. What is the value of the forward contract for the long party (answer in $ and round to the nearest cent)

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