Question 19 (1 point) You are short an oil forward. When you sold the forward, oil...

Question

Question

Question 19 (1 point) You are short an oil forward. When you sold the forward, oil price was $59. Oil price increased to $66

Answer 1

Answer #1

19.Selling price = $60

Buying price is the price at expiration i.e. $66

Hence, profit = -$6

The answer is -6

20.Spot price = Future price/(1+Risk free rate)

= 1560/(1+2%*1/12)

= $1557.40

Hence, the answer is 1557

Answer 2

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