A company enters into a forward contract with a bank to sell a foreign currency...
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A company enters into a forward contract with a bank to sell a foreign currency for Ki at time T. The exchange rate at time T proves to be Si (> K). The company asks the bank if it can roll the contract forward until time T2 (> 7) rather than settle at time Ti. The bank agrees to a new delivery price, K2. Explain how K2 should be calculated
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