Stock forward: current value of the short position

Financial market information

U.S. three-month (90 day) annualized risk-free rate			6.00%

• Six months ago, you entered into a forward contract to sell the underlying stock at a price of $80.
• The forward contract has three months to expiration now and the stock is currently trading at $75.
• A 360-day year.

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[Question]
What is the current value of the short position in the stock forward contract?

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[Answer]
The value of a long position in a forward contract at any time is:
V_t = S_t - F_(0,T)/(1+r)^(T-t)
(Assumed that there is no dividend.)

V_t = $75 - $80/(1+6.00%)^(90/360) = -$3.84

The value to the short position has the opposite sign and is $3.84.