Question: Please help me to answer this question step by step, thank you very much. Problem 59.10 Consider a forward contract of a stock index with

Please help me to answer this question step by step, thank you very much. Problem 59.10 Consider a forward contract of a stock

Please help me to answer this question step by step, thank you very much.

Problem 59.10 Consider a forward contract of a stock index with maturity date six months from now and forward price of $1020. Answer the following questions if this forward contract is settled for cash. (a) Find the long and short positions payoffs if the spot price of the index at maturity is $1040. (b) What if the spot sprice is $960? 59.10 (a) $20(long) and $20(short); (b) $60(long) and $60(short)

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