Week 5 finance (4Questions)
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1. Construct a delivery date profit or loss graph for a long position in a forward contract with a delivery price of $70. Analyze the profit or loss for values of the underlying asset ranging from $40 to $95?
2. Construct a delivery date profit or loss graph for a short position in a forward contract with a delivery price of $60. Analyze the profit or loss for values of the underlying asset ranging from $50 to $100?
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