Over the past few months, gold price has increased with heightened tensions in the Middle East. However, in recent days, the price of gold begins to bounce back to normal level due to several rounds of global peace talk. Consider a trader working for an investment bank. The trader took a long position in a forward contract at the onset of the gold price increase several months ago, and she is now concerned of losing any unrealized gains made on the original long forward position. As such, the trader takes a short position in the gold spot market.

How would you describe the traders initial position when she long the forward several months ago, and current position when she short gold in the spot market?

		The trader speculated several months ago, and she is now also speculating
		The trader speculated several months ago, and she is now hedging
		The trader hedged several months ago, and she is now also hedging
		The trader hedged several months ago, and she is now speculating