I am doing my homework now for my future market homework class and i need some help.

Current price per ounce for a gold futures contract is $400. You believe if price moves up by $10 that this contract will be fundamentally overpriced. What order would you place with your broker now to try to trade on this belief.

My answer is I buy if market price is less than $410. Is this correct? I was very confused in class in what he was doing.


The other question is what happens if you believe price moves down by $10 with everything else the same in the 1st question

My answer would be we sell if market price is less than $390.

Anyone can confirm if my answers are right or wrong? Thank you.
anyone know this?