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An investor entered into a one-year long forward contract on Frozen Orange Juice Concentrate (FOJC)...

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Finance

An investor entered into a one-year long forward contract on Frozen Orange Juice Concentrate (FOJC) in April ) when the forward price was US 286 cents per pound. Each contract is for delivery of
15,000 pounds. After one month (t=1 month) the price of the forward concentrate was US 293 cents per pound. Assuming a risk-free rate of 5% with continuous compounding, what is the value of the
forward contract after one month (t=1 month)?
+$999
+$1,030
-$1,030
-$1,050
+$1,003
-$1,003
+$1,050
-$999
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