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A trader who has a short position in wheat futures want the price of wheat to while a trader who has a long position in wheat futures wants the price of wheat to d. increase, increase

a. decrease, decrease c. increase, decrease b. decrease, increase

User Curlas
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1 Answer

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Since the trader has a short position in wheat futures, they will want the price of wheat to decrease. With a short position, the trader profits if the price of the asset decreases.

And for a trader who has a long position in wheat futures, they will want the price of wheat to increase. With a long position, the trader profits if the price of the asset increases.

Therefore, the correct options are:

a) decrease, increase

A trader with a short position wants the price to decrease, while a trader with a long position wants the price to increase.

User Alice Chan
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