Type the Excel formula for the payoff of a SHORT futures position at expiry, with the futures price in B1, the spot price at expiry in B2 and the contract size in B3.
Type the Excel formula for the payoff of a SHORT futures position at expiry, with the futures price in B1, the spot price at expiry in B2 and the contract size in B3.
Answer
=(B1-B2)*B3
(520 − 480) × 110 = 4,400 — the short gains when spot falls below the price it sold at.
OpenStax Principles of Finance §20.2 — hedging shape, reference only; original companies, contracts and figures