A Trader Who Has a __________ Position in Gold Futures

question 70

Multiple Choice

A trader who has a __________ position in gold futures wants the price of gold to __________ in the future.

• A) long; decrease
• B) short; decrease
• C) short; stay the same
• D) short; increase
• E) long; stay the same

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Definitions:

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Depreciable Asset

An asset subject to depreciation, typically tangible fixed assets excluding land, reflecting its usage, wear, and tear over time.

Patent Amortization

The gradual expense recognition of a patent's cost over its useful life, reflecting the consumption of the patent's economic benefits.

Quality Of Income Ratio

A ratio that measures the proportion of income generated from the core operations of a business.