You Short Sell Contract a at 428 and Buy Contract

question 90

Multiple Choice

You short sell contract A at 428 and buy contract B at 333. After one month, you close contract A at 435 and contract B at 339. What is you net profit in points?

• A) -13
• B) -1
• C) 1
• D) 13

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.

Statement of Financial Position

Another term for a balance sheet, it provides a snapshot of a company's assets, liabilities, and shareholder equity at a specific point in time.

Net Working Capital

The difference between a company's current assets and its current liabilities, measuring its short-term financial health and its ability to cover short-term obligations.

Accounts Receivable

Accounts receivable represents the money owed to a company for goods or services delivered or used but not yet paid for by customers.