____ Take Positions in Futures to Reduce Their Exposure to Future

question 40

Multiple Choice

____ take positions in futures to reduce their exposure to future movements in interest rates or stock prices.

• A)Hedgers
• B)Day traders
• C)Position traders
• D)None of these are correct.

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Definitions:

Fitness for a Particular Purpose

A legal concept that implies a product is suitable for the specific use the buyer intends.

Actual Knowledge

Direct awareness or understanding of a fact or piece of information.

Warranty Disclaimers

Legal statements that limit or eliminate the seller's liability for certain defects or failures in the product sold.

UCC Sections

Defined portions of the Uniform Commercial Code, a set of laws regulating commercial transactions and business dealings in the United States.