You Take a Long Position in a Futures Contract of One

question 64

Multiple Choice

You take a long position in a futures contract of one maturity and a short position in a contract of a different maturity,both on the same commodity.This is called __________.

• A) a cross hedge
• B) a reversing trade
• C) a spread position
• D) a straddle

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Definitions:

ASCII Code

A character encoding standard for electronic communication, representing text in computers by assigning a number to each symbol.

Toupper()

A function that converts a lowercase character to uppercase.

Uppercase Equivalent

Refers to the uppercase version of a given character or string, transforming all lowercase letters to their uppercase counterparts.

NULL

In programming, represents the zero or null pointer, indicating that a pointer does not point to any object or function.