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:

Government Grant

Financial assistance given by the government to individuals, organizations, or companies for specific projects or purposes, not requiring repayment.

Partnership

An official business arrangement where several individuals jointly manage the business and divide the profits among themselves.

Articles of Organization

Official papers submitted to state authorities to formally establish a limited liability company (LLC).

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.