A firm enters a long six-month forward contract on 5000, Finance Basics

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A firm enters a long six-month forward contract on 5000

Question: A firm enters a long six-month forward contract on 5000 troy ounces of silver. The forward price is 16.795 per troy ounce. If, in six months, the price of silver is $16.75 per troy ounce, what is the cash flow if the forward contract settles in cash?

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Finance Basics: A firm enters a long six-month forward contract on 5000

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