In General, When Deciding Whether a Market Participant Needs to Buy

question 35

Multiple Choice

In general, when deciding whether a market participant needs to buy or sell futures contracts in order to hedge, the rule could be:

• A) buy futures if you have the underlying asset and sell futures if you need the underlying asset.
• B) sell futures if you have the underlying asset and buy futures if you need the underlying asset.
• C) buy futures if you want to speculate, sell futures if you want to hedge.
• D)buy futures if you are willing to have unlimited risk, sell futures if you want capped risk.

Explore and critique claims based on calculated probabilities and sample statistics.

Understand the different sampling techniques and their applications.

Recognize and define key statistical terms and concepts.

Evaluate the appropriateness of sampling techniques for various scenarios.

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Definitions:

Labor Negotiation Game

A strategic interaction between employers and employees or their representatives regarding employment terms, often involving bargaining.

First Mover

A business that achieves a market edge by introducing a novel product or service ahead of others.

Salary Bargaining

The process of negotiating the terms of compensation for employment.

Employer Invested

A situation where an employer allocates resources or capital into improving their workforce, technology, or infrastructure.