When You Wish to Own the Underlying Security, Your Spot

question 49

Multiple Choice

When you wish to own the underlying security, your spot position is _______.

• A) fat.
• B) long.
• C) short.
• D) skinny.
• E) a. and c.

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Definitions:

Profit Margin

Measures how much out of every dollar of sales a company actually keeps in earnings, a key indicator of financial health and pricing strategies.

Fixed Costs

Costs that do not change with the level of output or production in the short term, such as rent, salaries, and equipment leases.

Variable Costs

Costs that fluctuate with the level of output, including raw materials, labor, and energy consumption.

Assets Utilized

The resources and assets a company effectively uses in its operations to generate revenue.