Determine underlying assets market price, Finance Basics

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Determine underlying assets market price

Question: Consider a forward with expiration in 1 year. The underlying asset pays no income. The continuously compounded risk-free interest rate is 2.5%. The forward price is $45. By how much will the long forward increase in value as the underlying asset's market price increases from $52 to $53?

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Finance Basics: Determine underlying assets market price

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