Which of the following provides the profit to a short position at contact maturity? A) original futures price — Spot price at maturity B) spot price at maturity — Original futures price

Accounting May 02, 2021

Expert Solution

Answer

A )

Explanation

Profits on positions at maturity:
Long = Spot price at maturity - Original futures price
Short = Original futures price - Spot price at maturity.

So, the correct option is A "Original futures price - Spot price at maturity".

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