Sugar Is Currently Selling for

question 70

Multiple Choice

Sugar is currently selling for $.201 a pound while the 6-month futures price is $.208. You take a long position in the 6-month sugar futures. Which one of the following prices would cause you the greatest loss if that price turns out to be the actual price of sugar per pound 6 months from now?

• A)$.198
• B)$.201
• C)$.205
• D)$.208
• E)$.211

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