Which of the Following Statements Is TRUE

question 46

Multiple Choice

Which of the following statements is TRUE?

• A) The buyer of a futures contract is said to be long futures.
• B) The buyer of a futures contract is said to be long futures
• C) The seller of a futures contract is said to be long futures
• D) The buyer of a futures contract is said to be short futures.
• E) The buyer of a futures contract is unwinding a long position.

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Definitions:

Storage Costs

Expenses incurred to keep inventory stored safely and effectively, including warehousing, material handling, and preservation costs.

Quantity

Quantity refers to the amount or number of units of a particular item or substance, indicating the volume, size, or extent of that item.

Holding Cost

Refers to the costs related to retaining inventory, encompassing expenses such as storage, depreciation, and opportunity costs.

Replenishment Order

An order placed to restock inventory or supplies to ensure sufficient levels are maintained to meet anticipated demand.