Traders Who Believe Volatilities Will Fall Significantly in the Near-Term

question 33

Multiple Choice

Traders who believe volatilities will fall significantly in the near-term will:

• A) sell futures now.
• B) buy options now.
• C) sell options now.
• D) buy futures now.

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Definitions:

Current Event

An incident or situation happening at the present time which is of interest to the public, often reported by the media.

Exchange Value

An economic concept referring to the perceived worth of a good or service in the context of trade or market transactions.

Quantitative Property

Attributes of objects or phenomena that can be measured and expressed numerically, allowing for quantitative analysis.

Capitalism

An economic system characterized by private or corporate ownership of goods and services, where investments, production, and distribution are determined mainly by competition in a free market.