With Regard to a Futures Contract, the Short Position Is

question 79

Multiple Choice

With regard to a futures contract, the short position is held by

• A) the trader who bought the contract at the largest discount.
• B) the trader who has to travel the farthest distance to deliver the commodity.
• C) the trader who plans to hold the contract open for the lengthiest time period.
• D) the trader who commits to purchasing the commodity on the delivery date.
• E) the trader who commits to delivering the commodity on the delivery date.

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Definitions:

Paired T-test

A statistical test used to compare the means of two related groups to determine if there is a statistically significant difference between them.

Sign Test

A nonparametric test used to determine if there is a median difference between paired observations.

Confidence Interval

A variety of values, calculated from sample data, that is presumed to hold the value of an unknown population characteristic.

Middle Distance Runners

Athletes who specialize in running races that are longer than sprints but shorter than long-distance events, typically ranging from 800 meters to 3000 meters.