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

A short 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%. What is the value of the short forward contract? Select one: O a. +$2.00 O b. +$1.96 O c. -$2.00 d. -$1.96

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