A trader enters into a one-year short forward contract to


A trader enters into a one-year short forward contract to sell an asset for $60 when the spot price is $58. The spot price in one year proves to be $63. What is the trader’s gain or loss? Show a dollar amount and indicate whether it is a gain or a loss. Show all steps.

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Financial Management: A trader enters into a one-year short forward contract to
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