If a Speculator Is Short and the Price of the Commodity

question 14

Multiple Choice

If a speculator is short and the price of the commodity rises, the individual
1. can expect a margin call
2. may take profits out of the position
3. may close the position at a loss

• A)1 and 2
• B)1 and 3
• C)2 and 3
• D)all of the above

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Definitions:

Confidence Interval

A range of values estimated from a sample, within which a value for a population is estimated to fall.

Negative Skew

A distribution where the tail on the left side of the probability density function is longer or fatter than the right side, indicating that the bulk of the values lie to the right of the mean.

Tri-modal Profile

A statistical distribution in which three modes or peaks are present, indicating three dominant values or traits in the data set.

Z Distribution

A normalization of the standard normal distribution, which is symmetric about the mean, showing the relationship between data points and their standard deviations.