You Are Currently Long in a Futures Contract

question 80

Multiple Choice

You are currently long in a futures contract.You then instruct a broker to enter the short side of a futures contract to close your position.This is called __________.

• A) a cross hedge
• B) a reversing trade
• C) a speculation
• D) marking to market

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Definitions:

Communication Gap

A type of service gap; refers to the difference between the actual service provided to customers and the service that the firm’s promotion program promises.

Communication Gap

The difference or misunderstanding that occurs when the message sent is not interpreted by the receiver in the way that the sender intended.

Communications Gap

A mismatch between customers' expectations based on a company's promotional messages and the actual service or product delivered.

Standards Gap

The discrepancy that occurs when the perceived quality or performance of a product or service falls short of the expected or promised standards.