Speculators in Futures Contracts That Normally Maintain the Futures Position

question 55

Multiple Choice

Speculators in futures contracts that normally maintain the futures position that they initiate for extended periods of time (such as weeks or months) are referred to as

• A)day traders.
• B)hedgers.
• C)closed-end traders.
• D)position traders.

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Definitions:

Investment Turnover

A financial ratio that measures the efficiency of a company in generating sales from its investments in securities or fixed assets.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments.

Investment Turnover

A measure of the efficiency of an entity in generating revenue from its investments, often calculated as sales divided by the average investment.

Activity Base

An activity base is a measure used in managerial accounting to allocate costs, based on activities that drive costs, as part of activity-based costing (ABC).