If you sell a futures contract, you will have a profit if the price of the underlying asset:
A) declines.
B) increases.
C) remains the same.
D) increases or decreases.
E) Insufficient information.

Question

Quizplus · Accepted Answer

When you sell a futures contract, you are essentially taking a short position, meaning you are betting that the price of the underlying asset will decline. Therefore, you will have a profit if the price of the underlying asset goes down.

If You Sell a Futures Contract, You Will Have a Profit