Traders Who Believe Volatilities Will Fall Significantly in the Near-Term

question 33

Multiple Choice

Traders who believe volatilities will fall significantly in the near-term will:

• A) sell futures now.
• B) buy options now.
• C) sell options now.
• D) buy futures now.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, meant to harmonize the law of sales and other commercial transactions.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.

Nonconforming Goods

Nonconforming goods are products delivered under a contract of sale that fail to meet the quality, specification, or performance requirements outlined in the agreement.

Reject

To refuse to accept, submit to, believe, or make use of.