You are short an oil forward. When you sold the forward, oil price was $59. Oil price increased to $66 at forward expiration. Forward price is $60. What is your profit? a) -6 b) -1 c) 0 d) 1 e) 6

Entrepreneurial Finance
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Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
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You are short an oil forward. When you sold the
forward, oil price was $59. Oil price increased to
$66 at forward expiration. Forward price is $60.
What is your profit?
a) -6
b) -1
c) 0
d) 1
e) 6
Transcribed Image Text:You are short an oil forward. When you sold the forward, oil price was $59. Oil price increased to $66 at forward expiration. Forward price is $60. What is your profit? a) -6 b) -1 c) 0 d) 1 e) 6
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