Question: Define a forward contract. If a forward contract on silver is negotiated at a forward price of $1590 per ounce, what is the payoff at

Define a forward contract. If a forward contract on silver is

Define a forward contract. If a forward contract on silver is negotiated at a forward price of $1590 per ounce, what is the payoff at maturity to the buyer if the silver price turns out to be $1520 per ounce and to what is the payoff to the seller? (Any storage costs are assumed to be zero in this exercise.)

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