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 Gain / payment on futures / CFA EOC #1 & 2 (reading 47) 
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Joined: 01 Mar 2013
Posts: 15
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it might just be too late at night to being doing problems….
CFA EOC #1 (reading 47) asks us to calculate the value of a forward contract. It’s -30.45.
It then asks if the payment is made by the long or short. The answer is that payment is made by the short to the long.
CFA EOC #2 asks us to calculate the value of another forward contract. It’s -11.44. The answer says this amount is a gain to the short.
Aren’t the answers to 1 and 2 contradictory??? I thought since the value was negative in answer 1 that the 30.45 was a loss to the long… and that payment would be made by the long to the short.
There’s no errata for either of these 2 questions… What am I missing?


08 Jul 2015
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Joined: 01 Mar 2013
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I think EOC#1 is tricky because it is an off-market contract. The interpretation is different from the usual contract.


08 Jul 2015
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