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?