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Compute the value of the contract the investor holds

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Question - An investor enters into a forward contract to buy 5,000 barrels of oil at $80 a barrel in three months. Two months later, suppose that the one-month forward price of oil is $83 a barrel, and the one-month interest rate is 0%. Compute the value of the contract the investor holds after two months?

Reference no: EM132625013

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