n NISM Certifications
VIII NISM Series VIII
Medium

After the initiation of the futures contract, the price of the underlying asset has risen. In this situation, ______.

Practice question from NISM Series VIII - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Basically, price change in the underlying asset has no effect on long or short positions in futures

  2. B

    A long position becomes unprofitable

  3. C

    A short position becomes profitable

  4. A long position becomes profitable

    Correct answer

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

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