Section B (2 Mark)An investor is bearish about ABC Ltd.

AAFM CWM_LEVEL_2 Question Answer

Section B (2 Mark)

An investor is bearish about ABC Ltd. and sells ten one-month ABC Ltd. futures contracts at Rs.5,00,000. On the last Thursday of the month, ABC Ltd. closes at Rs.510. He makes a _________. (assume one lot = 100)

Profit of Rs. 10,000

Loss of Rs. 10,000

Loss of Rs. 5,100

Profit of Rs. 5,100

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Section B (2 Mark)An investor is bearish about ABC Ltd.

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