Question
A forward contract is sold at t = 0 with a forward price F0 = $135. Suppose the spot price (S0) at t = 0
A forward contract is sold at t = 0 with a forward price F0 = $135. Suppose the spot price (S0) at t = 0 is $115, and the settlement (expiration) day spot price is ST = $125. What is the value of the contract to the buyer of this forward?
| $20 | ||
| $10 | ||
| $0 | ||
| $10 | ||
| $20 |
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Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
