Question: Q) Let there exist two forward contracts which have delivery dates one year from now: Forward contract A has a current price of $200 and

Q) Let there exist two forward contracts which have delivery dates one year from now: Forward contract A has a current price of $200 and a forward price of $205. Forward contract B has a current price of $190 and a forward price of $192. Imagine you enter into a long position in contract A and a short position in contract B. It so happens that the final price for the underlying asset in Contract A comes out to $202, and for Contract B, $189. Calculate your total profit, given that the risk-free interest is 0.06, and is continuously compounded.

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