Question: Please answer the entire question and show work so I can learn. For a non-dividend-paying stock index, the current price is 1100 and the 6-month
Please answer the entire question and show work so I can learn.
For a non-dividend-paying stock index, the current price is 1100 and the 6-month forward price is 1150. Assume the price of the stock index in 6 months will be 1210.
Which of the following is true regarding forward positions in the stock index?
I) Long position gains 50
II) Long position gains 60
III) Long position gains 110
IV) Short position gains 60
V) Short position gains 110
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