You Hear from Several Counterparties That a Major Market Participant

question 590

Multiple Choice

You hear from several counterparties that a major market participant has taken major losses on long USD/JPY positions. You know the reports are untrue, as you have in fact bought large amounts of USD/JPY from that very firm, which means that the impact of the reports on the market would be helpful to your position.

• A) As you have heard the reports from other parties, you are entitled to pass them on to market news services.
• B) As you have heard the reports from other parties, you are entitled to pass them on to other market participants.
• C) You should not pass any information you know to be false.
• D) You should contradict the reports.

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Definitions:

Fort Wagner

A fortification on Morris Island in South Carolina that was the site of an important battle during the American Civil War, known for the valiant charge of the 54th Massachusetts Volunteer Infantry, one of the first major African American units in the U.S. Army.

Integrated Regiment

A military unit consisting of soldiers from different races or backgrounds, combined to serve together as one entity.

Nation-State

A sovereign political entity characterized by a defined territory, permanent population, a government, and the capacity to enter into relations with other states.

Otto Von Bismarck

A Prussian statesman who orchestrated the unification of Germany in the late 19th century and served as its first chancellor.