Question: Explain the differences between a long forward position and a short forward position. In your answer, illustrate the pay-off functions of these positions with graphs.

Explain the differences between a long forward position and a short forward position. In your answer, illustrate the pay-off functions of these positions with graphs. Fully label your graphs. (note: you are welcome to draw them by hand, take a photo and attach it here)

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A forward contract is an agreement between two parties to buy or sell an asset at a predetermined price on a specified future date There are two prima... View full answer

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