What was the main risk scenario on the Metallgesellschaft trading strategy?

What was the main risk scenario on the Metallgesellschaft trading strategy?
A . Realized losses on short-term contracts against unrealized gains on the long-run contract
B . The final price of the underlying being higher than the initial price
C . The initial price of the underlying being higher than the final price
D . The short-term price of the underlying being higher than the long-run contract

View Answer

Answer: A