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Lakshmi Is Confident That the Price of Gold Is Going

Question 7

Multiple Choice

Lakshmi is confident that the price of gold is going to rise because the rate of inflation is increasing. To profit from her prediction, Lakshmi should


A) buy gold bullion today and then sell an equivalent amount of gold futures.
B) buy a gold futures contract today.
C) sell short a futures contract today.
D) sell short one futures contract and offset it by buying an equivalent long futures contract.

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