A Transaction in Which an Investor Holds a Position in the Spot

question 25

Multiple Choice

A transaction in which an investor holds a position in the spot market and sells a futures contract or writes a call is

• A)a gamble
• B)a speculative position
• C)a hedge
• D)a risk-free transaction
• E)none of the above

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Definitions:

Lipid

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, and others, which are crucial for cell structure and metabolism.

Nonpolar Covalent

A type of chemical bond where two atoms share a pair of electrons with each other equally.

Polar Covalent

A type of chemical bond where electrons are unequally shared between atoms, resulting in a molecule with an unequal distribution of charge.

Ionic Bond

Chemical bond that is formed when one atom loses an electron and another accepts that electron.