A Speculator Who Sells a Futures Contract Is Betting That

question 10

Multiple Choice

A speculator who sells a futures contract is betting that prices will _____ by the expiration of the contract.

• A) decrease
• B) increase
• C) remain constant
• D) Be unusually volatile

Recognize and explain the fallacy of affirming the consequent.

Identify and understand various fallacies in arguments.

Comprehend the essential presuppositions of argument making.

Learn the steps to evaluate the strength and validity of arguments.

---

Definitions:

Phonemic Encoding

The process of converting sounds into mental representations of the phonemes (distinct units of sound) that make up language, crucial for reading and spelling.

Raspy Voice

A voice that is harsh, grating, or hoarse, often resulting from irritation or injury to the vocal cords.

Elaboration

The process of adding more detail to or expanding on existing information.

Semantic Encoding

The process of encoding information according to its meaning, which helps in better recall.