​If the Futures Price of a Commodity Rises

question 18

Multiple Choice

​If the futures price of a commodity rises,
1) the long position sustains a loss
2) the long position experiences a profit
3) the short position sustains a loss
4) the short position experiences a profit

• A)1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

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Definitions:

Relative Risk

A measure used in epidemiology to determine the strength of the association between an exposure and an outcome, comparing the risk in the exposed group with the risk in the unexposed group.

Cohort Study

A type of observational study that follows a group of people over time to determine how certain factors affect the rates of a given outcome.

Physically Active

Engaging in bodily movements that require energy expenditure and are beneficial to physical health, such as exercising, walking, or participating in sports.

Absolute Risk

The probability of a specific event occurring in a specific period among a certain group of people.