Joe is long a forward contract with a forward price of 75, Financial Management

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Joe is long a forward contract with a forward price of 75

Joe is long a forward contract with a forward price of $75. Kate is short the forward contract at the same strike.

a) What are the payoffs for Joe and Kate if the stock price at expiration is: $60, $70, $75, $80, $85.

b) Graph the payoffs for Joe and Kate on two separate graphs.

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Financial Management: Joe is long a forward contract with a forward price of 75

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