Question
Ed has a long forward at price $100. Bob has a short forward on a different asset but the same expiration date, and F(0,T)=$110.
Ed has a long forward at price $100. Bob has a short forward on a different asset but the same expiration date, and F(0,T)=$110. Both assets have the same spot price S(T) at expiration. Ed's profit is $20. What is Bob's profit?
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
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