A Trader Enters into a One-Year Short Forward Contract to Sell

question 5

Short Answer

A trader enters into a one-year short forward contract to sell an asset for $60 when the spot price is $58. The spot price in one year proves to be $63. What is the trader's gain or loss? Show a dollar amount and indicate whether it is a gain or a loss. _ _ _ _ _ _ _ _ _ _

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Definitions:

National Labor Relations Board

A US federal agency overseeing labor laws related to collective bargaining and unfair labor practices, ensuring employees' rights to organize.

Managerial Duties

Responsibilities of managers within an organization that include planning, leading, organizing, and controlling to achieve organizational goals.

Card-Check Provision

A process in labor relations where a majority of employees in a bargaining unit sign authorization forms, or "cards," to indicate their wish to be represented by a union.