2025 CFA Level I Exam: CFA Discussion Topic: New to the site + question

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Topic: New to the site + question

Author	Topic: New to the site + question
jonathankyim @2016-09-16 22:47:24	Hey guys, I'm new to the site and this is the only forum where I've seen people asking questions on the exam material and actually getting a response. This is what I hope to get out of this forum. Hopefully I'll be able to get some help and also give it to others. Anyways, onto my question: Why is this true? I do not understand the following statement: A short position in an equity forward could not hedge the risk of a purchase of that equity in the future. A qualitative as well as a quantitative example would help a lot.

Author

Topic: New to the site + question

jonathankyim
@2016-09-16 22:47:24

Hey guys,

I'm new to the site and this is the only forum where I've seen people asking questions on the exam material and actually getting a response. This is what I hope to get out of this forum. Hopefully I'll be able to get some help and also give it to others. Anyways, onto my question:

Why is this true? I do not understand the following statement:

A short position in an equity forward could not hedge the risk of a purchase of that equity in the future.

A qualitative as well as a quantitative example would help a lot.

CFA Discussion Topic: New to the site + question

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.

CFA Discussion Topic: New to the site + question

Edward Liu