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What is the value of a forward contract at the initiation of the contract at t = 0 , to the buyer of the contract?
What is the value of a forward contract at the initiation of the contract at t = 0, to the buyer of the contract? (hint: value is same to the seller)
0 | ||
S0 F0 | ||
F0 F4 | ||
S4 F0 | ||
F0 S4 |
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