Question: A forward contract is sold at t = 0 with a forward price F0 = $200. Suppose the spot price (S0) at t = 0
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 = $215. What is the value of the contract at settlement to the buyer of this forward? $25 $15 $0 $15 $25
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