Assume that you are long in a forward on stock A The forward contract expires in 6 months The forward price that you have agreed on is 50 Stock A pays no dividends What is the payoff from the forward if stock A is trading at 57 in 6 months What is the payoff from the forward if stock A is trading a...

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Assume that you are long in a forward on stock A. The forward contract expires in 6

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Assume that you are long in a forward on stock A. The forward contract expires in 6 months. The forward price that you have agreed on is 50. Stock A pays no dividends.

What is the payoff from the forward if stock A is trading at 57 in 6 months?
What is the payoff from the forward if stock A is trading at 45 in 6 months?
Draw a payoff diagram that shows the payoff of the long forward as a function of the underlying stock price.

Posted Date: May 18, 2024 11:13 AM

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Assume that you are long in a forward on stock A. The forward contract expires in 6

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