A forward contract is sold at t = 0 with a forward price F0 = $200. Suppose the spot price (S0) at t = 0 is $175, and the settlement (expiration) day spot price is ST = $185. What is the value of the contract at settlement to the seller of this forward? 

Answer rating: 100% (QA)

To determine the value of the forward contract at settlement to the seller we n... View the full answer