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Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in January 2023 at a forward price of $129.3 cents
Suppose you enter into a forward contract to sell 15,000 pounds of orange juice in January 2023 at a forward price of $129.3 cents per pound. If the spot price of orange juice on maturity date turns out to be $121.0 cents per pound, what would be your payoff per pound at maturity as the short position in this contract? Show one decimal place. [Hint: The answer may be negative or positive depending on the comparison of the forward and spot prices]
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