A Speculator in Futures Contracts

question 93

Multiple Choice

A speculator in futures contracts:

• A)will always have an exposure elsewhere to the contract item
• B)takes a futures position has an opposite profit and loss potential to that of their physical market exposure
• C)seeks to exploit occasions when prices in the spot and futures markets are misaligned
• D)is seeking to profit from futures markets price changes
• E)takes a position simultaneously in both the physical and futures markets in order to profit from price differences.

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Definitions:

Affirmed

A legal term denoting that an appellate court has agreed with and confirmed the decision of a lower court.

Trial Court

Serves as the initial venue for adjudicating disputes where factual determinations and legal issues are addressed, often involving a judge and sometimes a jury.

Affirm Decision

A judicial ruling where an appellate court agrees with and upholds the decision made by a lower court.

Lower Court

Courts of limited jurisdiction, such as municipal or district courts, that handle less significant legal matters than higher courts.