Multiple Choice
Assume that the price paid by the buyer of a forward is $82 000 and further assume that the spot price of purchasing the hedged underlying asset at delivery date is $85 000.What is the result for the forward seller?
A) The result is a $3000 profit.
B) The result is a $3000 loss.
C) The answer depends on how the forward price develops over time.
D) There is too little information to answer the question.
Correct Answer:
Verified
Correct Answer:
Verified
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