What position would you recommend SAL to take

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Question - Sino-Aus Ltd (SAL) wants to invest in a futures contract. However, they are not certain what position to take in the futures contract. Industry analysts advised them that the market is at a 'low point'.

Required -

a. What position would you recommend SAL to take in the futures contract? Justify your answer.

b. Would your answer be different if the market is at a 'high point'? Explain.

Reference no: EM132563760

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