CFA Practice Question

There are 206 practice questions for this study session.

CFA Practice Question

Which of the following describe(s) a speculator?

I. An investor who neither wishes to sell natural gas nor wishes to buy natural gas takes a SHORT position in natural gas futures contracts.
II. A pet food manufacturer who wishes to purchase a large quantity of corn at the end of 6 months' time takes a LONG position in corn futures contracts.
III. An investor who neither wishes to buy silver nor sell silver takes a LONG position in silver futures contracts.
A. I and III
B. II and III
C. I, II and III
Explanation: The actions described in A and C represent positions that increase risk. The action described in B represents a position that decreases risk. A and C are actions that would be taken by a speculator.

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