You Are Currently Long in a Futures Contract

question 80

Multiple Choice

You are currently long in a futures contract.You then instruct a broker to enter the short side of a futures contract to close your position.This is called __________.

• A) a cross hedge
• B) a reversing trade
• C) a speculation
• D) marking to market

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Definitions:

Pricing Power

The ability of a company or sector to dictate the price of its goods or services in the market.

Talent

Natural ability or skill possessed by individuals, often refined through practice and training.

ATMs

Automated Teller Machines, electronic banking outlets that allow customers to complete basic transactions without the need for a branch representative.

Bank Branches

Physical locations of a bank where customers can conduct a range of financial transactions in person.