- TVM forward future dono me rehta hai…so ignoring tvm kyu likha hai
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Can you share the answer page please.
How to share i can only write here there is not showing any option to share image
See, acc to me
As forward contract are not mark to mark it.
So our value gets added if price moves in our favour.
As futures it is mark to mark it like everyday if you gain you will get the amount and your value becomes zero.
And in futures we have to pay margin and int. Comes into play but in forward we don’t pay anything today.
So at the end payoff of forward would be equal to future if we ignore the int. Part.
I hope this helps you!
And if not understood please share i can give you example for it.
Yeah i get ghe interest part and all the mark to margin stuff but what about TVM
Here They have considered int. as part of TVM only ig because no more logic fits this question
Ohh ok thanks alot