上一主题:QBank: Easy v Hard
下一主题:It can drive you insane
返回列表 发帖

Forward Contracts

CFAI Book 6, RD.58, PG. 50, Q3.

Question 3, part d and e.

Why do we factor in the "loss on asset" and "gain on asset"?

For example, in part d. The value is 98-105= -7 (which is a gain to the short). Why do I have to factor in the loss of 2?

Thanks!

in those problems they are just showing you how the entire deal looks like.

when you think in terms of the gain/loss on the contract, the underlying itself (which is by itself a separate part) also is undergoing a gain or a loss.

seller of the contract may gain on the contract, but could end up losing on the asset. So they are providing a total picture..

CP

TOP

Makes sense. Thanks cpk123!

TOP

返回列表
上一主题:QBank: Easy v Hard
下一主题:It can drive you insane