Looking for some clarity here. I am studying using Kaplan/Meldrum w/ CFAI problems.

The mark to market formula for a Forward seems straightforward.

**For Kaplan - (FPt-FP)(contract size) / (1+R(days/360)) = Vt**

FPt = Forward price at time t in the market

FP = Forward price specified in the contract @ inception

R = rate of price currency

Vt = value of forward at time t

**For CFAI/MM - (FP - FPt)(contract size) / (1+R(days/360)) = Vt**

Notice the difference in FP and FPt…it seems like Kaplan is referencing BUYING the base. CFAI/MM is referencing selling the Base?

In other words, when you buy the base, its FPt-FP and when you sell the base, its FP-FPt? I haven’t seen a clear rule outlined in either text for this.

Thank you.