One day, a long position in a futures contract sees gain from a daily settlement. Then,...

One day, a long position in a futures contract sees gain from a daily settlement. Then, a short position in the same contract sees loss from the daily settlement.

Group of answer choices

True

False

Expert Solution

The futures are one of the important derivativces. They are used to hedge against the risk. The long position (Buy position) and short position (Sell position) acts in the opposite direction. So, if long is in profit then short will be in loss. So, the statement seems to be true.

jeff jeffy answered 2 years ago

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