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You are given two forward contracts on two different underlying assets, both contracts expiring in 6 months:

Spot price Spot price in 6 months Forward price

Contract 1 $1000 $900 $1030

Contract 2 $1200 $1450 $1236

You have a short position in Contract 1 and a long position in Contract 2. What is your total payoff at the end of 6 months?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92412726

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