When the Settlement Price Rises, the Mark to Market System

question 23

Multiple Choice

When the settlement price rises, the mark to market system makes

• A) long position profits more than short position losses.
• B) long position losses greater than short position profits.
• C) long position losses equal to short position profits.
• D) long position profits equal to short position losses.

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Definitions:

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Inferential Statistics

Involves making predictions or inferences about a population based on a sample of data.

Probability

A measure of the likelihood that a particular event will occur, usually expressed as a number between 0 and 1.

Normal Distribution

A symmetrical, bell-shaped distribution of data in which most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.