In this question the customer has come to bank on 5th May but the answer for extension is solved on the basis of rate of 5th June…but as per me the rate should be 59.1400 + .10 % margin
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Whenever we cancel the contract, we need to check when it was actually due for delivery. We entered into contract on 5th March for 3 months => delivery due on 5th June. But customer arrived on 5th May for extension.
Since, 2 months has already lapsed when customer arrived, hence we need to cancel old contract at 1 month before maturity rate ie. 05th june and then enter into new forward contract for required period.