Which of the Following Is(are) Correct Statements About the Buyer

question 43

Multiple Choice

Which of the following is(are) correct statements about the buyer of a futures contract?
I. The contract buyer is short on the position.
II. The contract buyer will profit from the contract if the price of the underlying asset increases.
III. The buyer can liquidate the position with an offsetting transaction.
IV. The majority of the buyers actually take delivery of the item.

• A) II only
• B) I and II only
• C) I and IV only
• D) II and III only

---

Definitions:

Scripted Order

A scripted order refers to a predetermined sequence of actions or events, often used in the context of routines, performances, or programming.

Scrambled Order

An arrangement of items or information in a non-sequential, non-logical sequence, typically making it difficult to process or understand without reordering.

Proper Order

A principle or state wherein components or steps are arranged in a sequence that follows a logical or prescribed pattern, often critical for processes and procedures.