When the delivery price of the long forward contract is $65 and the actual price at the time of delivery is $55, there is a profit (loss) of $_________. ( a negative number for a loss and round to the nearest dollar.
When the delivery price of the long forward contract is $65 and the actual price at the time of delivery is $55, there is a
( a negative number for a loss and round to the nearest dollar.)
Forward contract is an agreement to buy or sell an asset at a pre-determined price on a specified future date.
If at the time of delivery, price of an asset is less than the price at which contract is taken up , then there will be a loss and on the other hand if price at the time of delivery is more than the price at which contract is taken up , then there will be a gain.
Step by step
Solved in 2 steps
When the delivery price of the long forward contract is $65 and the actual price at the time of delivery is $65, here is a
(Enter a negative number for a loss and round to the nearest dollar.)
by Bartleby Expert
