Series 3: Exercise

Exercise

Match the act with its description.

1. A. Arbitrage
2. B. Long hedge
3. C. Scalping
4. D. Position trading
5. E. Short hedge
6. 1. _____ A wheat farmer concerned that the price of his commodity will drop sells a wheat futures contract.
7. 2. _____ Marianne buys and sells continuously throughout a single day, trading between incremental price changes in hopes of realizing a profit.
8. 3. _____ Steve buys a futures contract of corn at a low price in Location A and simultaneously sells it at a higher rate in a Location B.
9. 4. _____ Todd typically purchases