Which One of the Following Is a Trade That Will

question 9

Multiple Choice

Which one of the following is a trade that will close out a previously established futures position?

• A)maintenance call
• B)margin call
• C)reverse trade
• D)position reversal
• E)margin closeout

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Definitions:

Average Cost Curve

A graphical representation that shows how the average cost of producing a good varies with the quantity produced, usually U-shaped due to economies and diseconomies of scale.

Joint Production

A process where multiple products are produced together in the same operation, often resulting in by-products.

Economies of Scope

Economies of scope occur when producing a wider variety of goods or services reduces the cost of production due to shared inputs or knowledge.

Scale Economies Index

A measure of the cost advantages that enterprises obtain due to their scale of operation, typically associated with cost per unit of output decreasing with increasing scale.