20-1. (Calculating forward contract payouts) Construct a delivery date profit or loss graph similar to Figure 202 for a long position in a forward contract with a delivery price of $65. Analyze the profit or loss for values of the underlying asset nanging from 440 to 580 . Figure 20.2 Delivery Date Profits or Losses (Payoffs) from a Forward Contract The term long position is otten used to refer to the cunesship of a secuity. contract, or commodity. That is, if you purchase a share of stock, you are said to be "org" on the stock, and when the price of the stock goes up, the holder of the long position benefts ar profits. Comesponcingly, a short position is the opposite of a long postion. It involves the saie rather than the purchase of a security, contract, or commodity, and the payoft to a short postion is simply the negative of the payoft to a long position. If you would make money with a long postion, this mears you would lose money with a short postion, and wice versa. (Panel B) Short Position in Forward Contrac