Question: Define a forward contract. If a forward contract on gold is negotiated at a forward price of $1,487 per ounce, what would be the payoff

Define a forward contract. If a forward contract on gold is negotiated at a forward price of $1,487 per ounce, what would be the payoff on the date to the buyer if the gold price is $1,518 per ounce and to the seller if the gold price is $1,612 per ounce?

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