A Speculator in the Futures Market Wishing to Lock in a Price

question 52

Multiple Choice

A speculator in the futures market wishing to lock in a price at which they could ________ a foreign currency will ________ a futures contract.

• A) buy; sell
• B) sell; buy
• C) buy; buy
• D) none of the above

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Definitions:

Standard Deviation

An index showing the degree of spread or deviation from the mean within a data collection.

Confidence Level

The probability, expressed as a percentage, that the calculated confidence interval actually includes the true population parameter.

Test Statistic

A value calculated from sample data that is used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

A default hypothesis that there is no significant difference or relationship between specified populations, or variables.