Suppose you short 80 units in the spot market. Each futures contract is for 2 units. For

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Suppose you short 80 units in the spot market. Each futures contract is for 2 units. For every $1 increase in the spot price, the futures price decreases by $1.25. You want to engage in a risk minimizing hedge. What should you do?

A. Sell 32 futures contracts

B. Sell 50 futures contracts

C. Buy 32 futures contracts

D. Buy 50 futures contracts

Posted Date: May 16, 2024 01:02 PM

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Suppose you short 80 units in the spot market. Each futures contract is for 2 units. For

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