Question
Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in January 2023 at a forward price of $135.7 cents per
Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in January 2023 at a forward price of $135.7 cents per pound.
If the spot price of orange juice on maturity date turns out to be $115.0 cents per pound, what would be your payoff per pound at maturity as the short position in this contract?
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