An investor sells a futures contract an asset when the futures price is $1,500.Each contract is on 100 units of the asset.The contract is closed out when the futures price is $1,540.Which of the following is true
A) The investor has made a gain of $4,000
B) The investor has made a loss of $4,000
C) The investor has made a gain of $2,000
D) The investor has made a loss of $2,000

Question

Quizplus · Accepted Answer

An investor who buys (has a long position)has a gain when a futures price increases.An investor who sells (has a short position)has a loss when a futures price increases.

An Investor Sells a Futures Contract an Asset When the Futures