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Suppose at time t0 you go short a forward contract with maturity T (and with delivery price equal to the forward price). At time t, t0 < t < T, suppose both the price of the asset and interest rates are unchanged. How much money have you made or lost? (This is sometimes called the carry of the trade.) How does your answer change if the asset pays dividends at constant rate q?
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Suppose at time t0 you go short a forward contract with maturity T (and with delivery price equal to...
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