If an Investor Is Going to Participate in the Commodities

question 83

Multiple Choice

If an investor is going to participate in the commodities market by buying a contract, he/she should do which of the following?
I. Realize that making a profit is relatively easy.
II. Be mentally prepared for an enormous loss.
III. Be financially able to meet repeated margin calls.
IV. Spend all of their available cash on margin deposits.

• A) I, II and III only
• B) II and III only
• C) II and IV only
• D) II, III and IV only

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