Miss Fortune is expecting to receive a bonus in 5 months time and has decided to use her money to buy Aztec shares. At present the shares are worth R57.50 but Miss Fortune is worried that the share will increase in value and become too expensive for her to buy. She then decides to buy a forward, that will allow her to buy the shares in 5 months time at R59.00. If after 5 months, the shares are worth R56.00, did Miss Fortune benefit from the forward?

Answer rating: 100% (QA)

To determine if Miss Fortune benefited from the forward contract we nee... View the full answer