The value of a long position in a forward contract at expiration is
A)the spot price plus the original forward price
B)the spot price minus the original forward price
C)the original forward price discounted to expiration
D)the spot price minus the original forward price discounted to expiration
E)none of the above

Question

Quizplus · Accepted Answer

The value of a long position in a forward contract at expiration is the spot price minus the original forward price. This represents the profit or loss from entering into the forward contract compared to the spot price at expiration.

The Value of a Long Position in a Forward Contract