n NISM Certifications
NSM General NISM
Medium

Person goes short in a futures contract at Rs.100 and on expiry the underlying price is Rs.101, he will ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Make profit of Rs.1

  2. Make loss of Rs.1

    Correct answer

  3. C

    No profit no loss

  4. D

    None of the above

Why this is the answer

Short position incurs loss when spot price increases.

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