Question: A SHORT forward contract has been entered (issued) some time ago by investor with a delivery price of 200 USD on a single underlying asset.
A SHORT forward contract has been entered (issued) some time ago by investor with a delivery price of 200 USD on a single underlying asset. Asset does not generate any income nor costs. It currently has 9M till delivery date of single asset. The current zero 9M rate is 6% pa. (annual compounding). Also the current spot price (on which market based new theoretical forward contract prices) is 190 USD. What is the current value of contract for investor?
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