Question: Futures and forward contracts Fred is long a forward contract on Apple stock with a forward price of $230. A. Present a table with Freds
Futures and forward contracts
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Fred is long a forward contract on Apple stock with a forward price of $230. A. Present a table with Freds payoff as a function of the stock price at the expiration of the contract (use the range {100, 120, 180, 210, 250, 270, 300} for the terminal stock price). B. Present Freds payoff graphically (payoff as a function of the terminal stock price). C. Wilma is short the same forward contract at the same forward price. Repeat parts a and b for Wilmas payoff.
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