Assuming That There Are No Brokerage Fees, a Trader Who

question 105

Multiple Choice

Assuming that there are no brokerage fees, a trader who entered a short BAB futures position at 95.30 and later closed-out at 94.70:

• A)will earn a profit of $0.60 per contract
• B)will make a loss of $0.60 per contract
• C)will earn a profit of $1443.64 per contract
• D)will make a loss of $1443.64 per contract.
• E)None of these are correct.

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Definitions:

VC

Venture Capital, a type of private equity and a form of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Growing

The process of increasing in size, quantity, value, or strength.

Corporate Angels

Wealthy companies that invest in small startups or entrepreneurs, often for strategic purposes as well as financial return.

Venture

An undertaking that is risky or daring but may lead to profit or success in a business context.