You Are Currently Long in a Futures Contract

question 31

Multiple Choice

You are currently long in a futures contract. You instruct a broker to enter the short side of a futures contract to close your position. This is called ________.

• A) a cross-hedge
• B) a reversing trade
• C) a speculation
• D) marking to market

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Definitions:

Employer Monitoring

The practice by employers of overseeing and tracking employees' actions and performance during work hours.

Telephone Calls

The act of using a telephone to communicate through voice or digital signals over a distance.

Employee Retirement Income Security Act

A federal law that sets minimum standards for pension plans in private industry to protect individuals in these plans.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. Often applicable in trustee, advisor, or agent relationships.