Profit from a long position in a forward is: A)(X - S_T) B)[S_T - F] × n C)(S_T - X) D)[F - S_T] × n

Name: Profit from a long position in a forward is: A)(X - S T ) B)[S T - F] × n C)(S T - X) D)[F - S T ] × n
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Question

Quizplus · Accepted Answer

Profit from a long position in a forward is calculated by taking the difference between the forward price (F) and the initial spot price (S_T), multiplied by the number of units (n) in the contract. Therefore, the correct formula for profit from a long position in a forward is: [S_T - F] × n

Profit from a Long Position in a Forward Is