Question: Consider a 9 - month forward contract established at rate of $ 2 8 . The contract is 3 months into its life. The spot

Consider a 9-month forward contract established at rate of $28.
The contract is 3 months into its life. The spot price is $30, the
annual risk-free rate is 4 percent, and the underlying makes no
cash payments. At month 3, determine:a)the amount at risk of a credit loss;b)which party bears credit risk, long or short?

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