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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!

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