At date t, a trader takes a short position in a forward contract on gold. The date

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At date t, a trader takes a short position in a forward contract on gold. The date t forward price is $1,831.49 per ounce of gold and the contract size is 139 ounces. At the contract's expiration date, the spot price of gold is $1,807.53 per ounce.

What is the value of the trader's total payoff at the contract's expiration date?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0470161012

9th Canadian Edition, Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

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Posted Date: Jul 13, 2023 05:27 AM

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At date t, a trader takes a short position in a forward contract on gold. The date

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Total Payoff Forward Price Spot Price Contract Size Given the informatio... View the full answer

Intermediate Accounting

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