The Value of a Long Position in a Forward Contract

question 5

Multiple Choice

The value of a long position in a forward contract at expiration is

• A)the spot price plus the original forward price
• B)the spot price minus the original forward price
• C)the original forward price discounted to expiration
• D)the spot price minus the original forward price discounted to expiration
• E)none of the above

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Definitions:

Alopecia

A condition resulting in partial or complete loss of hair from the body, including the scalp, often due to genetic, hormonal, or autoimmune factors.

Imbalanced Nutrition

A state where nutritional intake does not meet the body's needs, leading to health issues such as undernutrition or overnutrition.

Contract

An agreement between two or more parties, especially one that is written and enforceable by law.