An investor sells a futures contract an asset when the futures price is $1,500 . Each contract is on 100 units of the asset. The contract is closed out when the futures price is $1,540 . Which of the following is true
A. The investor has made a gain of $4,000
B. The investor has made a loss of $4,000
C. The investor has made a gain of $2,000
D. The investor has made a loss of $2,000
B
An investor who buys (has a long position) has a gain when a futures price increases. An investor who sells (has a short position) has a loss when a futures price increases.
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