The forward contract or the futures contract

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Reference no: EM131981842

Assume that you can enter a six month forward contract or a six month futures contract for Bitcoin. If you are certain that Bitcoin will be going down over the next six months but you do not have access to much money for the next few months, answer the following questions about your strategy:

(a) Which would fit your strategy better: the forward contract or the futures contract? Explain.

(b) What position will you take (long/short) and what prices will you pay to enter the position?

Reference no: EM131981842

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