A short hedge is a simultaneous ________ position in the spot market and a ________ position in the futures market.
A) long; long
B) long; short
C) short; long
D) short; short

Question

Quizplus · Accepted Answer

A short hedge involves taking a long position in the spot market (buying the underlying asset) and a short position in the futures market (selling futures contracts) to protect against price decreases.

A Short Hedge Is a Simultaneous ________ Position in the Spot