Some Investors Combine Two or More Different Futures Contracts into One

question 100

Multiple Choice

Some investors combine two or more different futures contracts into one investment position that offers the potential for generating a modest amount of profit while restricting exposure to loss. This practice is called

• A) speculating.
• B) spreading.
• C) gambling.
• D) market making.

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Definitions:

Significance

The importance or meaning attached to something, often determined by its impact or relevance to an issue, situation, or field of study.

Autonomy

The degree of independence and freedom of choice an individual or entity has.

Confidence

The belief in one's abilities, qualities, and judgment.

Malpractice Insurance

A form of professional liability insurance that protects healthcare providers and other professionals against claims of improper practice or negligence.