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Determining the forward contract

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Reference no: EM131104466

A certain commodity sells for $130 today. The present value of the cost of storing this commodity for one year is $9. The risk-free rate is 3%. What is a fair price for a 1-year forward contract on this asset?

A. $146.29

B. $133.27

C. $143.17

D. $138.66

E. $152.66

Reference no: EM131104466

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