Concerning forward contracts, why does the short have to pay the long if the spot price is above the contract price ? If it's the case, the buyer makes a benefit on the actual price because he buys at a cheaper price, isn't he ? So why does he receive additional payment from the seller ?
The "additional payment" you mention IS the benefit. That is the nature of cash settlement: instead of carrying out the transaction, the difference (in this case in favor of the long) is settled. Think what would happen without the cash settlement: the short would have to sell at $50, netting her -$5, because she could have sold at $55 today. Long pays her $50 and then sells the asset for $55, netting her +$5. All this is equal to the short just paying the long $5.
You all probably dont give a shit but does anyone know a way to log back into an instagram account..? I somehow forgot my login password. I appreciate any assistance you can give me.
@Jayce Lane Thanks so much for your reply. I found the site through google and Im waiting for the hacking stuff now. Takes a while so I will get back to you later when my account password hopefully is recovered.
it's best classified as an option. When a certain event happens (car breakdown) the insurer must payout the damages. If nothing happens you keep paying the insurance company a monthly premium (for taking on the risk)
best explanation of this type of contracts I've found
Digestible and Informative
Please upload more video's
Concerning forward contracts, why does the short have to pay the long if the spot price is above the contract price ? If it's the case, the buyer makes a benefit on the actual price because he buys at a cheaper price, isn't he ? So why does he receive additional payment from the seller ?
The "additional payment" you mention IS the benefit. That is the nature of cash settlement: instead of carrying out the transaction, the difference (in this case in favor of the long) is settled. Think what would happen without the cash settlement: the short would have to sell at $50, netting her -$5, because she could have sold at $55 today. Long pays her $50 and then sells the asset for $55, netting her +$5. All this is equal to the short just paying the long $5.
You all probably dont give a shit but does anyone know a way to log back into an instagram account..?
I somehow forgot my login password. I appreciate any assistance you can give me.
@Rodrigo Devon instablaster :)
@Jayce Lane Thanks so much for your reply. I found the site through google and Im waiting for the hacking stuff now.
Takes a while so I will get back to you later when my account password hopefully is recovered.
@Jayce Lane it worked and I finally got access to my account again. Im so happy!
Thank you so much, you saved my ass!
Contract between car insurance company and owner is which type of contract?
it's best classified as an option. When a certain event happens (car breakdown) the insurer must payout the damages. If nothing happens you keep paying the insurance company a monthly premium (for taking on the risk)
Great explanation, thank you!
Can’t find your courses in udemy, I mean for expample “CFA level 1 (2023) Derrivatives”. How it disappeared or you deleted it from udemy-platform?
Hello Den, our partnership with Udemy has ceased. Our courses are now available exclusively on our website prepnuggets.com
@@PrepNuggets thank you!
Great explanation.
You try to give the video more brightness it will be great if you do
hirap tangaina hahahahaha
Nice
Best lecture
Bravo!
SO CLEAR, thank you
thanks!
thank you very helpful!
Thank you! Very clear to understand :)
Fantastic content 👏👏👏
Incorrect explanation, sorry.
why