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- UID
- 223371
- 帖子
- 191
- 主题
- 41
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-6
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question about forward contracts
When a contract expires how can you realize a gain/loss on the underlying asset when the contract price is fixed??
For example, if the price at expiration of an asset is $110 and the forward contract was initiated at $105, and you are short (meaning you will sell the asset at expiration) how is it that you have a a $5 dollar loss on the forward contract and a $10 gain on the asset (so a net $5 gain) when you do not get to realize the gain on the asset since you have to deliver it for $105?????
Please help. Thanks! |
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发表于 2011-7-11 19:19
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