A forward contract is sold at t = 0 with a forward price F0 = $135. Suppose the spot price (S0)at t = 0 is $115, and the expiration day spot price is ST = $125. What is the value of the contract to the buyer of this forward at expiration?
-$5.00 |
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-$10.00 |
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$10.00 |
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$5.00 |
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$20.00 |
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A forward contract is sold at t = 0 with a forward price F0 = $135. ...
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