The long and short positions on forward contracts will always have equal and opposite payoffs.

Question

Quizplus · Accepted Answer

True. The long position on a forward contract is equivalent to buying the underlying asset at a future date, while the short position is equivalent to selling the underlying asset at a future date. The payoffs for these positions will always be equal and opposite, as one party gains what the other party loses.

The Long and Short Positions on Forward Contracts Will Always