Chapter 02 · Section 2.1

IMM DM Futures-Q1

It is now May. Our investor is still short 1 IMM June DM Futures contract. He decides that he wants to close his position. Our investor can close his position:

a) by selling 125,000 Deutsche Marks.
b) by buying 125,000 Deutsche Marks.
c) by selling 1 IMM June DM Futures contract.
• d) by buying 1 IMM June DM Futures contract.
  Yes. Our investor was short 1 June IMM DM Futures contract. By purchasing the same futures in which he was short, he offsets and closes his short position. He has no further obligation and can walk away with his profit or loss on the transaction. Continue
  e) by selling 1 IMM May DM Futures contract.
  f) by buying 1 IMM May DM Futures contract.

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