A Trader Who Has a __________ Position in Wheat Futures

question 90

Multiple Choice

A trader who has a __________ position in wheat futures believes the price of wheat will __________ in the future.

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

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Definitions:

Positive Correlation

A relationship between two variables in which both variables move in the same direction, meaning as one variable increases, the other also increases, or as one decreases, the other also decreases.

Variables

Elements, features, or factors that are likely to vary or change within a study or experiment.

Scores

Quantitative measures or values used to represent the performance or ability of an individual or group, often in the context of exams, tests, or games.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.