I understand if you long Forwards/Futures, you don’t actually own the underlying till the expiration date, so you give up the benefits . Therefore you substract Future CFs and Conveniece yield.
What about if you short Forwards/Futures? You own the underlying till the expiration date, wouldn’t you add Future CFs and convenience yield?
In Forward/Future formula, they ask you to substract Future CFs and convenience yield, it doesn’t matter if you long or short?
Confused.
BUMP for an answer tp his question. Seems like a simple question but it can throw you off. There was a similar question in Scwhesr mock vol 2 but I havent reviewed my answers yet but a simple explanation would be nice.
If you want to calc the value of the short you just put a minus sign in front of the long value.
Yes all the formulas are from long perspective. Forward/futures are no sum game one losses and one gains. So short would be opposite sign. Derivative requires conceptual understanding 
Yes all the formulas are from long perspective. Forward/futures are no sum game one losses and one gains. So short would be opposite sign. Derivative requires conceptual understanding