If the spot price at time of maturity is $75 and you enter into a short forward contract with a counterparty having Forward price of $60, what is the value (or payoff) of your position?

Using the information from above, in what scenario(s) is the Long Party making a gain or positive payoff?

 
Using the information from above, in what scenario(s) is the Short Party making a gain or positive payoff?

Answer rating: 100% (QA)

a In a short forward contract the payoff or value of your position at maturity is calculated as the ... View the full answer