Forwards & Futures Query from Quiz 1

agrawalanks
Posts: 3
Joined: Sat Nov 10, 2012 2:35 am

Forwards & Futures Query from Quiz 1

Postby agrawalanks » Sat Nov 10, 2012 7:34 pm

Can some one please answer the below with justification as in the quiz the answer provided is quite confusing and it mentions option 3 as well as option 4?

The spot price of corn on April 10 is 207 cents/bushels. The futures price of the September contract is 241.5 cents/bushels. If hedgers are net short, which of the following statements is most accurate concerning the expected spot price of corn in September?
Choose one answer.
a. The expected spot price of corn is higher than 207.
b. The expected spot price of corn is lower than 207.
c. The expected spot price of corn is higher than 241.5.
d. The expected spot price of corn is lower than 241.5

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content.pristine
Finance Junkie
Posts: 356
Joined: Wed Apr 11, 2012 11:26 am

Re: Forwards & Futures Query from Quiz 1

Postby content.pristine » Mon Nov 12, 2012 1:12 pm



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