Can anyone explain why are we writing st and st minus fo in third column in reverse coc
Also explain why do we write so and so minus ft in third column of cash and carry forward
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Whatbis th payoff from S-
THINK PROPERLY…you have borrowed an sold that stock and so u have to later but the stock…so outflow would be (-) ST on maturity…hope u understand ST …it means stock price on maturity.
What is the payoff from F+
IT IS UPSIDE BETTING….
so payoff would be ST- Fo
Pls do memtion whether ur doubt is clarified or I need to explain in Hindi or do u need an audio
Can you send audio and explanation in hindi both