Which of the Following Is NOT an Effective Tool in the Hands

question 4

Multiple Choice

Which of the following is NOT an effective tool in the hands of regulators to fight a short corner and market squeeze?

• A) forcing the manipulator to quit the market when the short positions mature (liquidation-only trading)
• B) restricting the manipulator from increasing the size of their position
• C) limiting the amount of contracts the manipulator can hold (enforce position limits,lower position limits)unless they are doing it for legitimate hedging purposes
• D) imposing significant penalties and fines on the manipulators
• E) ordering producers to produce more to increase the deliverable supply

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Definitions:

P(A Or B)

The probability that at least one of two events, A or B, will occur.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of the other.

P(A And B)

The probability of both event A and event B occurring together.