Question: q3 A long forward contract that was negotiated some time ago will expire in three months and has a delivery price of $40. The current

q3 A long 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 the three-month forward contract is $42.50. The three-month risk-free interest rate (with continuous compounding) is 8% per annum. What is the value of the long forward contract?

Select one:

-$2.55

+$2.55

+$2.45

-$2.45

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