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You anticipate copper prices to fall over the course of the next 3 months. You have USD 150,000 available to invest. Describe an investment strategies
You anticipate copper prices to fall over the course of the next 3 months. You have USD 150,000 available to invest. Describe an investment strategies with which you can profit by trading in futures contracts on the Chicago Mercantile Exchange if your expectation about prices is correct. Assume todays futures price is 3.0500. Describe your strategy in detail and calculate your profit/loss if the spot price in 3 months is 15% higher than todays futures price.
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