AuthorTopic: Question about a short position
jonathankyim
@2014-08-22 18:53:59
Hey guys,

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.

CFA Discussion Topic: Question about a short position

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I used your notes and passed ... highly recommended!
Lauren

Lauren