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Vet Revenue when the contract expires after you intend to sell the asset 6. You own an asset which you plan to sell during the
Vet Revenue when the contract expires after you intend to sell the asset 6. You own an asset which you plan to sell during the coming year. The cash price today, at t-0, of an asset is $ 200, the tisktee-396. The forward price for delivery one year hence (at t-1) is the no-arb price. Assume that you go short the forward contract today. At t-0.5, the spot price of the asset is S 185. We return to the original counterparty and terminate the short position in the forward contract at t= 0.5, ["complete offset"! for its fair market value and sell the asset at the spot price. What is your net revenue (net the spot price you sell at against the gain or loss on the forward contract)
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