Hey guys, I hope everyone is preparing well,
I noticed in problem 9, and updating through Level II errata:
Since the contract was entered into a year ago, and two years left,
the answer is (since short position):
(F0(T) - Ft(T)) * (present value factor for maturity year 1 + present value factor for maturity year 2) * notional amount
_ My question is why use PV factor for maturities 1 and 2, and not use for maturities 2 and 3??? _
Help???