Which of the Following Is(are)correct Statements About the Buyer of a Futures

question 32

Multiple Choice

Which of the following is(are) correct statements about the buyer of a futures contract?
I.The contract buyer is short on the position.
II.The contract buyer wants the price of the item to increase.
III.The buyer can liquidate the position with an offsetting transaction.
IV.The majority of the buyers actually take delivery of the item.

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

---

Definitions:

Future

The time or a period of time following the present moment, often considered as yet to come.

Decisions

The process of making choices or conclusions based on available information or reasoning.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards.

Preference

An individual's choice or predilection towards certain ideas, objects, or outcomes over others.