Question: Explain the difference between long forward position and short forward position A trader enter in a short forward contract on cotton when the forward price

  1. Explain the difference between long forward position and short forward position
  2. A trader enter in a short forward contract on cotton when the forward price is 50 cent per pound. The contract is for the delivery of 50,000 pounds. How much the trader gain/lose if the cotton price at the maturity of the contract is

A. 48.20

B. 51.30

C. Explain the difference between an arbitrageur and a trader

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