An investor who goes short in a futures contract will pay any increase in value of the underlying asset and will receive any decrease in value in the underlying asset
<h3>Who is an investor?</h3>
An investor is an individual who has invested certain amount of money in a business, firm or organization.
There is an agreement on the amount invested and how profit will be shared in the business.
Therefore, an investor who goes short in a futures contract will pay any increase in value of the underlying asset and will receive any decrease in value in the underlying asset.
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<h2>The first three options are right</h2>
Explanation:
Exchange rate:
- The "price or value of one country's currency" is exchanged for the price of "another country's currency value".
- The exchange rate always varies. It gets updated everyday.
- Exchange rates are calculated based on the value of "interest rate, trade, inflation, growth rate, employment and geopolitical conditions".
- There are two ways in which currency value is determined. A floating value is identified by the open market.
- We must travel to another country when we need more exchange rates.
Answer: Yes, the years worth of payments is more than the actual claim
Explanation:
the claim was $2500 and he payed $3,012 a year for insurance