On sep 15 2015 you buy 500 forward contracts on the sampp, Ask an Expert

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On Sep 15, 2015 you buy 500 forward contracts on the S&P 500 index with a delivery price of 2000 and an Oct 15, 2016 expiration date. On Oct 15, 2015 you sell 500 forward contracts on the S&P 500 index with a delivery price of 2005 and the same Oct 15, 2016 expiration date. The IR is 10%.

a. What will your payoff be on Oct 15, 2015?

b. Calculate your profit or loss on October 15, 2015.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91416557

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