If a Trader Holding a Long Position in Oil Futures

question 36

Multiple Choice

If a trader holding a long position in oil futures fails to meet the obligations of a futures contract, the party that is hurt by the failure is

• A)the offsetting short trader.
• B)the oil producer.
• C)the clearinghouse.
• D)the broker.

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Definitions:

Glucocorticoids

A class of steroid hormones produced by the adrenal gland, involved in the regulation of metabolism and immune response.

Immune Response

The reaction of the body's immune system to foreign substances or pathogens, including the production of antibodies and other defense mechanisms.

Adrenal Medullary Hormones

Hormones secreted by the inner part of the adrenal glands, including adrenaline and noradrenaline, which play a role in the body's stress response.

Sympathetic Nervous System

A branch of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for action.