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A one-year long forward contract on a gas portfolio is entered into when the gas portfolio...

A one-year long forward contract on a gas portfolio is entered into when the gas portfolio price is $3 and the risk-free rate of interest is 3% per annum with continuous compounding.

  1. What are the forward price and the initial value of the forward contract?
  2. Six months later, the price of the gas portfolio is $2.6 and the risk-free interest rate is still 3%. What are the forward price and the value of the forward contract?
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