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

A long forward contract that was negotiated some time ago will expire in four months and has a delivery price of $40. The current forward price for a four-month forward contract is $42. The four-month risk-free interest rate (with continuous compounding) is 6% per annum. What is the value of the long forward contract?

Select one:

-$2.04

+$1.96

+$2.04

-$1.96

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