Which of the following would result in a profit of a euro futures contract when the euro depreciates?
A) Buy a euro futures contract; sell a futures contract after the euro has depreciated.
B) Sell a euro futures contract; buy a futures contract after the euro has depreciated.
C) Buy a euro futures contract; buy an additional futures contract after the euro has depreciated.
D) None of the above would result in a profit when the euro depreciates.

Question

Quizplus · Accepted Answer

Selling a euro futures contract and then buying it back after the euro has depreciated would result in a profit, as the contract would be cheaper to buy back.

Which of the Following Would Result in a Profit of a Euro