Answer: zero.

## Explanation This scenario describes a **cash-and-carry arbitrage** strategy: - **Buy asset** using borrowed funds at risk-free rate (r) - **Sell forward** contract on the same asset At expiration: - The trader delivers the asset to fulfill the forward contract - Receives the forward price (F) - Pays back the loan amount: S₀ × (1 + r)^T According to no-arbitrage principle: **F = S₀ × (1 + r)^T** Therefore, at expiration: **Value = F - S₀ × (1 + r)^T = 0** The position should have zero value at expiration to prevent arbitrage opportunities. If it were positive or negative, traders could exploit risk-free profits.

Author: LeetQuiz Editorial Team