5.4. USING FORWARD CONTRACTS (3): SPECULATION 189
Figure 5.5:Speculating in the spot market
VT^6
ST
Ft,T
ST−Ft,T
Buy forward
Milton thinks
he’ll end here
VT^6
ST
Ft,T
Ft,T−ST
Sell forward
Maynard thinks
he’ll end here
5.4. USING FORWARD CONTRACTS (3): SPECULATION 189
Figure 5.5:Speculating in the spot market
VT^6
ST
Ft,T
ST−Ft,T
Buy forward
Milton thinks
he’ll end here
VT^6
ST
Ft,T
Ft,T−ST
Sell forward
Maynard thinks
he’ll end here