Suppose You Sell a Three-Month Forward Contract at $35

Multiple Choice

Suppose you sell a three-month forward contract at $35.One month later,new forward contracts with similar terms are trading for $30.The continuously compounded risk-free rate is 10 percent.What is the value of your forward contract?

A) $4.96
B) $5.00
C) $4.92
D) $4.55
E) none of the above