The type of traders who take position in the market of future, which is based on expectations of prices of underlying assets are classified as ___________?
Correct answer: C. position traders
- A. professional traders
- B. non-investment traders
- C. position traders
- D. future market traders
Explanation
Position traders take futures-market positions based on their expectations about future price movements in the underlying asset. Professional traders may include many types of traders, so that label is not specific enough.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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