If a Speculator Is Short and the Price of the Commodity

question 5

Multiple Choice

If a speculator is short and the price of the commodity rises,the individual 1.can expect a margin call
2) may take profits out of the position
3) may close the position at a loss

• A) 1 and 2
• B) 1 and 3
• C) 2 and 3
• D) all of these choices

---

Definitions:

License

A permit from an authority to own or use something, do a particular thing, or carry out a trade.

Personal Privilege

A special right, advantage, or immunity granted to an individual based on status or relationship.

Tenancy in Common

A form of co-ownership where each party owns a separate fraction of the property and can transfer their interest independently.

Joint Tenancy

Joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenant(s).