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.
• e) by selling 1 IMM May DM Futures contract.
  No. If he could sell an IMM May DM Futures contract, he would assume another short position rather than liquidate his short position on his IMM June DM Futures contract.
  f) by buying 1 IMM May DM Futures contract.

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