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A. The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profitor loss to a short position if the spot price of the market index rises to $920 at the expiration date?

B. The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit? The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. What is the profit market index falls to $900 at the expiration date?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92794550

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