Which of the following statements is true? a. The seller of a futures contract is said...

Which of the following statements is true? a. The seller of a futures contract is said to be short futures. b. The buyer of a futures contract is said to be long futures. c. The seller of a futures contract is said to be long futures. d. The buyer of a futures contract is said to be short futures. e. Choices a and b

Solutions

Expert Solution

Correct option is > e. a and b

Seller of futures contracts is short on values means seller feels prices are too high.

Buyer of futures contracts is long on values means buyer feels prices are expected to go higher than quoted.

jeff jeffy answered 1 year ago

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