Question: Question 7 1 2 pts At date t , a trader takes a short position in a forward contract on a stock. The date t
Question pts
At date t a trader takes a short position in a forward contract on a stock. The date t forward price is $ per share and the contract size is shares. At the contract's expiration date, the stock price is $ per share. What is the value of the trader's total payoff at the contract's expiration date?
Enter your answer in the box below. Use two decimal places. Do not include the dollar sign, $
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
