If the Commodity's Futures Price Declines

question 3

Multiple Choice

If the commodity's futures price declines
1. the long position profits
2. the short position profits
3. the buyer of the contract profits
4. the seller of the contract profits

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

---

Definitions:

Independent Verification

The process of having a third party check or validate information, findings, or conditions to ensure accuracy or compliance.

Ethics Audit

A systematic evaluation of an organization's ethics programs and practices, aiming to identify potential areas for improvement and ensure compliance with ethical standards.

Credibility

The quality of being trusted and believed in, often influenced by a person's or organization’s reputation and their ability to provide reliable and accurate information.

Objectivity

The state or quality of being true even outside of a subject's individual biases, interpretations, feelings, and imaginings.