- You Sell A Forward On Gold With A Forward Price F O 1750 Spot Gold Is Traded At S O 1725 Gold Price At Expiration 1 (16.26 KiB) Viewed 28 times
You sell a forward on gold with a forward price F(O)=$1750. Spot gold is traded at S(O)=$1725. Gold price at expiration
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You sell a forward on gold with a forward price F(O)=$1750. Spot gold is traded at S(O)=$1725. Gold price at expiration
You sell a forward on gold with a forward price F(O)=$1750. Spot gold is traded at S(O)=$1725. Gold price at expiration is S(T)=$1800 at expiration. Your payoff is (you receive)... -25 50 -50 25