Ed has a long forward at price $100. Bob has a short forward on a different...
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Ed has a long forward at price $100. Bob has a short forward on a different asset but the same expiration date, and F(0,T)=$110. Both assets have the same spot price S(T) at expiration. Ed's profit is $20. What is Bob's profit? Ed has a long forward at price $100. Bob has a short forward on a different asset but the same expiration date, and F(0,T)=$110. Both assets have the same spot price S(T) at expiration. Ed's profit is $20. What is Bob's profit?
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In a long forward position the profit is calculated by ... View the full answer
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
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