Exercise
Match the act with its description.
A. Arbitrage
B. Long hedge
C. Scalping
D. Position trading
E. Short hedge
1. _____ A wheat farmer concerned that the price of his commodity will drop sells a wheat futures contract.
2. _____ Marianne buys and sells continuously throughout a single day, trading between incremental price changes in hopes of realizing a profit.
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.