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If the stock price falls from 3 to 2, then If the StOCk price rises from 3 t0 4 then a) the future price falls
If the stock price falls from 3 to 2, then If the StOCk price rises from 3 t0 4 then a) the future price falls from 3 to 2; ll the future price ; hedger makes prot (3-2)X100h *=100h * from kl hedger makes from the the future, at t=1; future, at t=1; by investing the prot from t=1 till t=2, 100h* I) from t=1 till t=2, dollars prot becomes (1+0.1)x100h*=110 h *; becomes meanwhile, hedger makes a loss of 100>
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