What is the profit or loss of this financial accounting question? You are short a gold forward contract. When you sold the forward,the gold price was $1,850 per ounce. At the forward expiration, thegold price increased to $1,920 per ounce. The forward price is $1,870per ounce.What is your profit or loss?

Step 1: Definition of Profit/Loss on a Short Forward ContractWhen you short a forward contract, you…

Answered: You are short a gold forward contract.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are short a gold forward contract. When you sold the forward, the gold price was $1,850 per ounce. At the forward expiration, the gold price increased to $1,920 per ounce. The forward price is $1,870 per ounce. What is your profit or loss?