Investment assets vs. consumption assets Short selling ...

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Short selling Selling an asset that is not owned – Table 5.1, cash flows from short sale and purchase of ... General solution: F 0 = S 0 e rT (5.1) So, F 0 = $40.50 ... with the payment being made at the end of the year. The gold spot price is $1,600 and the risk-free rate is …

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