The Taking of a Position Opposite to That of a Current

question 44

Multiple Choice

The taking of a position opposite to that of a current outstanding position is known as a(n) _________ trade.

• A) program
• B) reverse
• C) open
• D) optimal
• E) market

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure investment.

Long-term Bonds

are bonds that mature over a period typically longer than ten years, offering a fixed interest rate over their life span.

Systematic Risks

The danger present in the whole market or a specific market segment, referred to as market risk, is unavoidable even with diversification.

Unsystematic Risks

The portion of risk in an investment that is attributable to the specific circumstances of an individual company or industry.