INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 115

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Before you start investing,you should plan to have a minimum of [$1,000 | $15,000] available.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

---

Definitions:

Spot Price

The current market price at which an asset, such as securities, commodities, or currencies, can be bought or sold for immediate delivery.

Basis Risk

The possibility that a futures contract's price won't align with the movements of the underlying asset's price, resulting in potential financial losses during hedging activities.

Clearinghouse

An intermediary between buyers and sellers of financial instruments that ensures the orderly and efficient settlement of transactions.