Some Futures Exchanges Impose Position Limits on Speculators

question 15

Multiple Choice

Some futures exchanges impose position limits on speculators.These are:

• A)minimum numbers of contracts that speculators may hold for any individual type of commodity or asset.
• B)maximum numbers of contracts that speculators may hold for any individual type of commodity or asset.
• C)unlimited numbers of contracts that speculators may hold for any individual type of commodity or asset.
• D)constraints which speculators face when buying futures contracts.

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Definitions:

Voluntary Liquidation

The process initiated by a company's directors to voluntarily close down the business, sell its assets, and use the proceeds to pay off creditors before any remaining surplus is distributed to the shareholders.

Bankruptcy Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing, including all assets.

Prepetition Assets

Assets that an individual or entity possesses before filing for bankruptcy protection.

Automatic Stay

A legal provision that halts all lawsuits, foreclosures, and collection activities against a debtor the moment a bankruptcy petition is filed.