Assume that speculators purchased a futures contract at the beginning of the year. If the price of the security represented by the futures contract ____ over the year, then these speculators would likely have purchased the futures contract for ____ than they can sell it for.

Question

Quizplus · Accepted Answer

If the price of the security increases over the year, speculators who purchased a futures contract would likely have bought it for less than they can sell it for, making a profit from the price difference.

Assume That Speculators Purchased a Futures Contract at the Beginning