Personal Finance & Money Asked by Guest1011 on December 7, 2020
If Sam invests $200000 on Futures and takes Futures short position on an index fund whose settlement is one year from now, with the current futures price being $1200.
The relation between spot price(S) and futures price(F) is given as : F = S * e^(r*T);
where r is the risk free rate = 10% and T is time to settlement.
The index fund currently priced at $1100.
If after six months the price is expected to be $1203.
What will be his profit/loss after 6 months?
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