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Amy has just taken a short position in a 21-month forward contract on a non-dividend...

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Accounting

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Amy has just taken a short position in a 21-month forward contract on a non-dividend paying stock which is trading at $62/ share. The continuously compounded risk-free rates for all maturities are 3.5%. Assume that 12 months later, the price of the stock is $76/ share and the risk-free rate of interest is still 3.5% per annum. What is the value of Amy's position in the forward contract? ( 9 points)

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