Suppose that you sell a forward contract on corn and that the expiration of the...

50.1K

Verified Solution

Question

Finance

image

Suppose that you sell a forward contract on corn and that the expiration of the forward contract is in a month. The current price of corn is $40, and the forward price is $50. At the expiration, the price of corn becomes $70. What is your profit or loss? O A. $30 profit O B. $20 profit $30 loss C. $20 loss D $50 loss E

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!
Become a Member

Other questions asked by students