Trader a enters into a forward contract to buy an asset for, Financial Management

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Trader a enters into a forward contract to buy an asset for

Trader A enters into a forward contract to buy an asset for $1,000 in one year. Trader B buys a call option to buy the asset for $1,000 in one year. The cost of the option is $100. What is the difference between the positions of the traders? Show the profit as a function of the price of the asset in one year for the two traders.

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Financial Management: Trader a enters into a forward contract to buy an asset for

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Financial Management: Trader a enters into a forward contract to buy an asset for

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