Question
Which is incorrect about futures? Futures represent ownership of the commodity. Shorting futures mean you sold now with delivery and cash for the sale due
Which is incorrect about futures?
Futures represent ownership of the commodity.
Shorting futures mean you sold now with delivery and cash for the sale due in the future from the buyer.
Long a future means you own it now and it is stored for you until delivery
Long a future means you have placed a downpayment on the commodity, and you pay the rest upon delivery in the future.
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
