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.

---

Definitions:

Mode

In statistics, it refers to the value that appears most frequently in a data set.

Most Frequent Score

It is also known as the mode in statistics, representing the value that appears most frequently in a set of data.

Negative Correlation

A relationship between two variables in which one increases as the other decreases.

Coffee Consumption

The act of drinking coffee and how often it occurs, often studied for its effects on health and behavior.