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MTM forward contract

Hi all,

When calculating the MTM of a forward contract, what forward market price should I be using? 

1. The forward market price of the commodity when the contract should be maturing? 

or

2. Today’s forward market price of the commodity?

Thanks

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Say you entered into a 6 month forward contract.

3 months have gone by and you’d like to close the forward position with an offsetting forward position.

you’d choose the forward expiring in 3 months to close your own forward contract that has 3 months left.

= (New Forward Price - Old Forward  Price) /( risk free rate)t

Thank you, but when you say New forward market price and Old forward price, you mean New = Market price and old = contract price? 

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