Which of the Following Would Result in a Profit on a Futures

question 14

Multiple Choice

Which of the following would result in a profit on a futures contract when the underlying currency depreciates?

• A)Buy a futures contract; sell a futures contract aFter the currency has depreciated.
• B)Sell a futures contract; buy a futures contract aFter the currency has depreciated.
• C)Buy a futures contract; buy an additional futures contract aFter the currency has depreciated.
• D)None of the above would result in a profit when the underlying currency of the futures contract depreciates.

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Definitions:

Standardization of Outputs

The process of making products or services uniform to ensure consistency and reliability.

Geographic Divisions

A type of organizational structure where operations are segmented based on geographical locations, allowing for localized strategies and decisions.

Direct Supervision

A management style where a supervisor closely oversees and controls the work processes and tasks of subordinates, often including immediate feedback.

Standardization of Outputs

Standardization of Outputs refers to the process of making products, services, or processes uniform or consistent across a company or industry, to ensure quality and efficiency.