Corn is currently selling for $6.15 a bushel while the 3-month futures price is $6.20. Carl believes that corn will actually sell for $6.45 a bushel 3 months from now. Which one of the following positions in corn should he take today, given this belief? Multiple Choice a. sell in the spot market b. sell in the futures market c. take a long position in the futures market d. take a short position in the futures market e. take a short position in the spot market

Respuesta :

Take a long position in the futures market one of the following positions in corn should he take today, given this belief.

What does the term "futures market" mean?

The commodities property or security will be purchased or sold under a futures market at a specified price and future date. Trading systems like the CME Group are where currency futures, or commonly "futures," are traded. To purchase futures, a stockbroker account must be approved.

Is trading in futures a wise investment?

Futures Are Excellent for Risk diversification or Diversification

Due to their ability to reduce unanticipated expenses associated with straightforward asset purchases, commodities and derivatives contribute to the improvement of the underpinning market's efficiency.

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