1. What is the difference between a long forward position and a short forward position?...
60.1K
Verified Solution
Link Copied!
Question
Finance
1. What is the difference between a long forward position and a short forward position?
2. An investor enters into a short-forward contract to sell 100,000 British pounds (GBP) for U.S. dollars at an exchange rate of 1.5000 USD per pound. If the contract is held to expiration how much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1.49000 and (b) 1.5200?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
