|Author||Topic: Question about a short position|
I'm new to the site and this is the only forum where I've seen people asking questions on the CFA 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.
This post showed up in the wrong forum before. My apologies.