If the Commodity's Futures Price Declines

question 3

Multiple Choice

If the commodity's futures price declines
1. the long position profits
2. the short position profits
3. the buyer of the contract profits
4. the seller of the contract profits

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4

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Definitions:

Cash

Money in the form of coins or notes that is used to conduct transactions, pay debts, or serve as a medium of exchange.