​A Firm Sells a Currency Futures Contract, and Then Decides

question 75

Multiple Choice

​A firm sells a currency futures contract, and then decides before the settlement date that it no longer wants to maintain such a position. It can close out its position by:

• A) ​buying an identical futures contract.
• B) ​selling an identical futures contract.
• C) ​buying a futures contract with a different settlement date.
• D) ​selling a futures contract for a different amount of currency.
• E) ​purchasing a put option contract in the same currency.

---

Definitions:

Poverty Line

A threshold income level below which an individual or household is considered to be living in poverty, varying by country and adjusted for family size.

Poverty Rate

The percentage of the population living below the national poverty line, indicating the proportion of people with income insufficient to meet basic needs.

Income Distribution

The way in which a nation’s total earnings are divided among its population.

Bill Gates

An American business magnate, software developer, and philanthropist known for co-founding Microsoft Corporation, one of the world's most valuable technology companies.