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Pi Inc. enters a forward contract to buy a stock at a forward price of $65.64. The
stock is currently trading at $65, and the contract expires in four months. The risk-
free rate is 3%, and the price of the underlying one month from now is $67. The
value of the forward contract one month from now is closest to:
A. $1.36.
B. $1.85.
C. $0.64.
 i [12] t, let's get you set up in the You'll

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