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11. A firm has the following cash settled forward contracts in place on a single asset, asset A. The contracts were put on at various
11. A firm has the following cash settled forward contracts in place on a single asset, asset A. The contracts were put on at various points in the past, but all the contracts expire one year from today. Todays spot price of the asset is $100. Riskfree is 3%. The firm will purchase 120 units. Contract details:
Long/Short | FWD Price | units in contract | |
long | 80 | 100 | |
short | 106 | 200 | |
long | 100 | 100 |
What is the value of the contracts today?
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