Suppose you enter into a forward contract to sell 15,000 pounds of orange juice on January 2022 at a forward price of 13
Posted: Wed Jul 06, 2022 6:41 pm
Suppose you enter into a forward contract to sell 15,000 poundsof orange juice on January 2022 at a forward price of 133.9 centsper pound. If the spot price of orange juice on maturity date turnsout to be 131.3 cents per pound, what would be your payoff perpound at maturity as the short position in this contract? Do notround the answer. [Hint: The answer may be negative or positivedepending on the comparison of the forward and spot prices]