Which of the following is NOT true about a futures contract? The short contract becomes...
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Which of the following is NOT true about a futures contract? The short contract becomes more valuable as the price of the asset declines. The long contract becomes more valuable as the price of the asset rises. A forward price is a price that is negotiated today and paid in the future. A futures price is a price that is negotiated in the future and paid in the future. - What market position of a gold futures contract allows you to have a capital loss when the price of the gold futures increases? A. forward position B. futures position C. long position D. short position A seller of a S&P500 futures contract with the cash settlement will _____ any increase in value of the S&P500 index and will _____ any decrease in value of the S&P500 index. A. pay; pay C. receive; pay B. receive; receive
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