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Managing Risk by Hedging with Forward Contracts

20–1. (Calculating forward contract payouts) Construct a delivery date profit or loss graph similar to Figure 20.2 for a long position in a forward contract with a delivery price of $65. Analyze the profit or loss for values of the underlying asset ranging from $40 to $80.
20–2. (Calculating forward contract payouts) Repeat Study Problem 20–1, but this time draw the profit or loss graph ...

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