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A futures trader observes that the equilibrium price of a given futures contract is 101, and the market price of the futures contract is 100.
A futures trader observes that the equilibrium price of a given futures contract is 101, and the market price of the futures contract is 100. Which of the following strategies should the trader follow?
Sell short the asset and go long the futures contract.
Buy the asset and go short the futures contract.
Sell short the asset and go short the futures contract.
Buy the asset and go long the futures contract.
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