1. At time t, you enter a forward contract to buy a stock for price Kat a future time T. Prove that At times later the P
Posted: Tue Nov 16, 2021 8:22 am
1. At time t, you enter a forward contract to buy a stock for price Kat a future time T. Prove that At times later the P&L for trade is P&L = P(t +At,T)[Fiter - F,], + where F, is the forward price of the stock.