If a Speculator Has a Short Position and the Commodity's

question 26

True/False

If a speculator has a short position and the commodity's price falls, that individual will receive a margin call.​

---

Definitions:

Promissory Note

A monetary tool that involves a formal pledge from one entity to another to pay a specific amount of cash, either upon request or at an agreed-upon date in the future.

Maturity

The date on which a financial obligation, such as a loan or bond, is due to be repaid in full.

Interest Receivable

An accounting term for interest income that is earned but not yet received in cash.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered but not yet paid for.