The Prefix Milli Means ________

question 28

Multiple Choice

The prefix milli means ________.

• A)1/1,000,000
• B)1/1,000
• C)1/10
• D)1,000

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Definitions:

Contango

A situation in futures trading where the future price of a commodity is higher than the spot price, often indicating expectations of rising prices.

Natural Hedgers

Entities or individuals who inherently have an opposite risk exposure compared to their needed market position, allowing them to hedge their risks without having to use derivative products.

Backwardation

Backwardation is a market condition in which futures prices are lower in the distant delivery months than in the near delivery months, often indicating a shortage of the commodity in the spot market.

Long Position

An investment strategy where an investor purchases an asset with the expectation that its price will rise, aiming to sell it at a higher price.