With Regard to a Futures Contract, the Short Position Is

question 79

Multiple Choice

With regard to a futures contract, the short position is held by

• A) the trader who bought the contract at the largest discount.
• B) the trader who has to travel the farthest distance to deliver the commodity.
• C) the trader who plans to hold the contract open for the lengthiest time period.
• D) the trader who commits to purchasing the commodity on the delivery date.
• E) the trader who commits to delivering the commodity on the delivery date.

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Definitions:

Modern River Channel

The contemporary course taken by a river as it flows to the sea, often shaped by natural and human factors.

Erosion

The process by which natural forces remove soil, rock, or dissolved material from one location and transport it to another, shaping the landscape.

Half Lives

The time required for a quantity to reduce to half its initial value, commonly used in reference to radioactive decay.

Parent Atoms

The original atoms that undergo radioactive decay, transforming into different daughter atoms as a result of the process.