Chapter 02 · Section 2.1

Short Gold

Lara has a short position in 10 December 350 CMX gold futures calls.

Which of the following statements are true?

a) She has limited loss and unlimited profit potential.
b) She has unlimited loss and limited profit potential.
c) She has the right to buy at 350 but no obligations.
d) She has the obligation to buy at 350 if she is assigned.

(Click here for help)