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Assume that the price paid by the buyer of a forward is $82 000 and further assume that the spot price of purchasing the hedged
Assume that the price paid by the buyer of a forward is $82 000 and further assume that the spot price of purchasing the hedged underlying asset at delivery date is $85 000. What is the result for the forward seller?
A. The result is a $3000 profit.
B. The result is a $3000 loss.
C. The answer depends on how the forward price develops over time.
D. There is too little information to answer the question.
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