Multiple Choice
An investor enters into a forward contract to buy 4,000 barrels of oil in three months at $80 a barrel. At the maturity of the contract, the spot price of oil is $65 a barrel. The investor's payoff (gain/loss) from the forward contract is
A) A gain of $60,000
B) A loss of $60,000
C) A gain of $260,000
D) A loss of $260,000
Correct Answer:
Verified
Correct Answer:
Verified
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