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

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Definitions:

Hypothesis Generation

The process of formulating a testable statement based on observations, theories, or existing evidence, to be investigated in research.

Deception

The act of misleading or falsely convincing others of something in order to gain advantage or hide the truth.

Serious Personal Harm

involves significant physical, emotional, or psychological injury or damage to an individual, often discussed in contexts of ethics, law, and personal well-being.

Ethical Leadership

A leadership approach that is guided by respecting ethical principles and values, and inspiring the same respect in followers through actions and decisions.