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  3. Study Set
    Derivatives and Risk Management Study Set 2
  4. Exam
    Exam 10: Forward and Futures Hedging,spread,and Target Strategies
  5. Question
    Suppose You Buy an Asset at $50 and Sell a Futures
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Suppose You Buy an Asset at $50 and Sell a Futures

Question 6

Question 6

Multiple Choice

Suppose you buy an asset at $50 and sell a futures contract at $53.What is your profit at expiration if the asset price goes to $49? (Ignore carrying costs)


A) -$1
B) -$4
C) $3
D) $4
E) none of the above

Correct Answer:

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