Assume that speculators had purchased a futures contract at the beginning of the year. If the price of a security represented by a 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 increased over the year, speculators would have purchased the futures contract for less than they can sell it for, resulting in a profit.

Assume That Speculators Had Purchased a Futures Contract at the Beginning