A trader with no current position in crude palm oil (CPO) is bullish about CPO spot and

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A trader with no current position in crude palm oil (CPO) is bullish about CPO spot and futures prices over the next months. He believes CPO prices will go up and wishes to profit from his expectation. He observes that the next-month CPO futures is quoted at RM4800 per ton. What would be his speculative strategy? Suppose the price of the same CPO futures contract unexpectedly falls to RM4650 per ton, calculate the profit or loss on his futures position per contract.

Posted Date: Oct 07, 2021 09:51 AM

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A trader with no current position in crude palm oil (CPO) is bullish about CPO spot and

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Here trader is bullish which means he believes tha... View the full answer

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