If a futures investor has a SHORT position and futures prices rise, his margin account will:
A: show a GAIN.
B: suffer a LOSS.
C: remain unchanged.
A: show a GAIN.
B: suffer a LOSS.
C: remain unchanged.
举一反三
- To the holder of a long position, it is more desirable to own a forward contract than a futures contract when interest rates and futures prices are: A: negatively correlated. B: uncorrelated. C: positively correlated.
- Margin in the futures market is most accurately described as a:（） A: loan to the futures trader. B: requirement set by federal regulators. C: down payment from the futures trader.
- 13. A company sold a machine that originally cost 350,000 dollars for 130,000 dollars when accumulated depreciation on the machine was 200,000 dollars. The gain or loss recorded on the sale of this machine is ( ) A: $0<br/>gain or loss. B: $130,000<br/>gain. C: $20,000<br/>loss. D: $20,000<br/>gain.
- Which of the following statements about the futures market is most accurate() A: Speculators trade to reduce some preexisting risk exposure. B: If a trader’s account falls below the maintenance margin level they have three days to bring it back up to the maintenance margin level. C: Open interest is the number of futures contracts for which delivery is currently obligated.
- Like the stock exchange and the futures exchange, it can become the investor’s last trading counterparty.