By Taking the Short Position on a Futures Contract of $100,000

question 23

Multiple Choice

By taking the short position on a futures contract of $100,000 at a price of 115 you are agreeing to ________ a ________ face value security for ________.

• A)sell;$100,000;$115,000.
• B)sell;$115,000;$100,000.
• C)buy;$100,000;$115,000.
• D)buy;$115,000;$100,000.

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Definitions:

Multicollinearity

A statistical phenomenon where two or more predictor variables in a multiple regression model are highly correlated, leading to difficulties in determining the individual effect of each predictor.

Independent Variables

Factors in a study or simulation that are adjusted or classified to study their impact on outcome variables.

Dependent Variables

Variables in an experiment or model whose values are expected to change as a result of changes in other variables.

Indicators

Variables or metrics used to assess a specific aspect or condition within a study or analysis.