Futures contract short seller can only gain money

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True or False?

1. A futures contract short seller can only gain money from her position if the futures price declines over time.

2. The current income received on a long futures position is generally positive, but small in comparison to the capital gain/loss of the contract itself.

3. Establishing a spread position with futures contracts gives the investor a means to limit potential losses associated with futures trading.

4. The profits earned by a futures contract seller exactly equal the losses earned by a futures contract buyer, and vice versa.

Reference no: EM132036809

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