With Regard to a Futures Contract, the Short Position Is

question 79

Multiple Choice

With regard to a futures contract, the short position is held by

• A) the trader who bought the contract at the largest discount.
• B) the trader who has to travel the farthest distance to deliver the commodity.
• C) the trader who plans to hold the contract open for the lengthiest time period.
• D) the trader who commits to purchasing the commodity on the delivery date.
• E) the trader who commits to delivering the commodity on the delivery date.

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Definitions:

Limited Partnership

A partnership structure where one or more partners have limited liabilities, not exceeding their investment, while at least one partner has unlimited liability.

Limited Partners

Investors in a partnership whose liability is limited to the amount of their investment in the partnership.

Limited Liability

A legal structure that limits the personal financial liability of the owners or shareholders of a company to the amount that they have invested.

Limited Partnerships

A business structure where some partners have limited liabilities and are not involved in daily management, contrasting with general partners who have unlimited liability.