Suppose you sell a December forward contract on gold on August 31 at a forward price...
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Suppose you sell a December forward contract on gold on August 31 at a forward price of $1750/oz, and then you buy a December forward contract on gold on October 15 at a forward price of $1800/oz. The December forward contract expires on December 10. What is your net profit on these two transactions? When do you receive your net profit on these two transactions? Suppose you sell a December forward contract on gold on August 31 at a forward price of $1750/oz, and then you buy a December forward contract on gold on October 15 at a forward price of $1800/oz. The December forward contract expires on December 10. What is your net profit on these two transactions? When do you receive your net profit on these two transactions?
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To calculate the net profit from these two forward contract transactions we need to consider the cha... View the full answer
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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