Trader a enters into a forward contract to buy an asset for, Ask an Expert

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Trader A enters into a forward contract to buy an asset for $1,000 in one year. Trader B buys a call option to buy the asset for $1,000 in one year. The cost of the option is $100. What is the difference between the positions of the traders? Show the profit as a function of the price of the asset in one year for the two traders.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91946952

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