Which One of the Following Is a Trade That Will

question 9

Multiple Choice

Which one of the following is a trade that will close out a previously established futures position?

• A)maintenance call
• B)margin call
• C)reverse trade
• D)position reversal
• E)margin closeout

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Definitions:

Lessor

An entity or individual that rents out an asset or property to another party, known as the lessee.

Tax Rate

A percentage at which an individual or corporation is taxed.

Residual Value

The estimated value of an asset at the end of its useful life, important in calculating depreciation and lease contracts.

Lessor's Tax Rate

The tax rate applicable to a lessor, the entity that leases out a property or asset, on the income generated from the lease.