If a Speculator Is Short and the Price of the Commodity

question 14

Multiple Choice

If a speculator is short and the price of the commodity rises, the individual
1. can expect a margin call
2. may take profits out of the position
3. may close the position at a loss

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

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Definitions:

Border Slave States

The U.S. states located along the border between the northern states, where slavery was illegal, and the southern states, where slavery was legal, prior to and during the Civil War.

Unconstitutional

A term describing any law, decree, or government action that violates the constitution.

Free Blacks

African-American persons not held in slavery; immediately before the Civil War, there were nearly a half million in the United States, split almost evenly between North and South.