Is it true that value of futures don’t consider present value of profit unlike forwards. I mean do the mark to market payouts consider time value?
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Yes. Because with futures the contra has to post margin that day (as in at the end of trading today). Whereas in order to mark to market a forward contract that expires say 90 days from now that you initiated 90 days ago, if you wanted to offset it, you would offset it using the forward contract for delivery in 90 days (which must be discounted to today by 90 days).
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