What market position of a coffee futures contract allows you to have a capital gain...
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What market position of a coffee futures contract allows you to have a capital gain when the price of the coffee futures increases? A. forward position B. futures position C. long position D. short position The spot price of an asset is $900 per unit. A 3-month forward contract on this asset is priced at $930 per unit. What is the profit or loss per unit to a short position if the spot price of the asset rises to $940 by the expiration date? A) $20 gain B) $20 loss C) $10 gain D) $10 loss The example of _______ is that a wheat farmer decides to _______ wheat futures to hedge price risk. A. long-hedging/buy B. long-hedging/sell C. short-hedging/buy D. short-hedging/sell
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