Yesterday you sold 6-month futures on Standard & Poors Index at a price of 2,700. Today the
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Yesterday you sold 6-month futures on Standard & Poor’s Index at a price of 2,700. Today the S&P closed at 2,650, and S&P futures closed at 2,750. You get a call from your broker, who reminds you that your futures position is marked to market everyday. Is she asking you to pay money, or is she about to offer to pay you?
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You sold the market short which is a bet that it will decli...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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