FIN 405 Sell the Futures First to Buy Them Back at A Lower Price Discussion

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FIN 405 Sell the Futures First to Buy Them Back at A Lower Price Discussion

Economics, FIN

FIN 405 Sell the Futures First to Buy Them Back at A Lower Price Discussion

Question Description

I’m working on a finance question and need an explanation and answer to help me learn.

The party with a short position in a futures contract has quality, timing, and delivery options.

Do these options increase or decrease the futures price? Provide your view.

You are required to provide THREE different, separate, and unique answers.

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