n NISM Certifications
XIII NISM Series XIII
Medium

A speculator thinks that the price of ABC Company will fall in the future. To profit from this, they will likely:

Practice question from NISM Series XIII for SIF - Mock Test 10 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Buy ABC futures now and sell them later when the price falls.

    Correct answer

  2. B

    Wait until the price of ABC futures matches the cash market price.

  3. C

    Sell ABC futures now and buy them later when the price falls.

  4. D

    Do nothing because they recently lost money.

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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