Which One of the Following Is the Strategy of Earning

question 4

Multiple Choice

Which one of the following is the strategy of earning risk-free profits by taking advantage of any unusual differences between cash and futures prices?

• A)cash-futures arbitrage
• B)mark to market
• C)margin calling
• D)basis recognition
• E)cash spotting

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Definitions:

Cotton Fiber

A natural textile fiber obtained from the seed of the cotton plant, widely used in the manufacture of soft and breathable fabrics.

Auto Lift

Equipment used in automotive repair shops and garages to elevate vehicles for maintenance and repair work.

Day-To-Day Operations

The routine activities that are conducted in the daily functioning of an organization or business.

Ancillary Services

Supplementary services provided by companies that are not primary to their main business but enhance or support the overall consumer experience.