alleryStart learning →Long forward: delivery price 50, 1,000 units, spot 58 at maturity. Gain?
AGain of 58,000
BGain of 50,000
CGain of 8,000
DLoss of 8,000
Answer & Solution
Correct answer: C. Gain of 8,000
Long payoff is spot minus delivery price: (58 - 50) x 1,000 = 8,000 gain.
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