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
Posted: Mon Apr 25, 2022 8:38 am
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