1. On March 15, 2023 when a share of Holly Corp is available in the public market for $5 a share, X(in the long position) agrees to purchase 10 shares of Holly Corp from Y (in the short position) for $60 (the forward price, representing $6 per share on December 15, 2023. If on December 15, 2023, Holly Corp shares are trading at $6.25 per share, and the parties agree to cash settle the forward contract, what would X or Y receive?

Answer rating: 100% (QA)

Answer To solve this problem we need to calculate the profit or loss for both X the long position an... View the full answer