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How would a market maker offset their position when a client wants to be long a forward contract on a non-dividend-paying underlying asset? a.) Borrow
How would a market maker offset their position when a client wants to be long a forward contract on a non-dividend-paying underlying asset?
a.) Borrow money equal to the current spot price, short sell underlying
b.) Lend money equal to the current spot price, long the underlying c.) Lend money equal to the current spot price, short sell underlying
d.) Borrow money equal to the current spot price, long underlying.
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