A Forward Contract Is Struck at a Forward Price of $40.At

question 14

Multiple Choice

A forward contract is struck at a forward price of $40.At maturity the spot price of the asset is $45.The short forward position earns the following payoff:

• A)$5
• B)-$5
• C)$45
• D)-$45

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Definitions:

Digital Recorder

An electronic device designed to record and store audio or video signals digitally for later playback or processing.

Interviewee

A person who answers questions during an interview, typically the one being interviewed.

Interviewer

A person who asks questions to another individual, known as the interviewee, in a formal or informal setting, often for the purpose of gathering information, evaluating qualifications, or for media publication.

Locating

The act of finding or establishing the position of something, often used in legal contexts to refer to identifying persons, assets, or information.