Question10 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A short put option A long forward contract A short position in apples A plain vanilla swap A holding position in apples ResetMaximum marks: 1 Flag question undefined单项选择题
A
A short put option
B
A long forward contract
C
A short position in apples
D
A plain vanilla swap
E
A holding position in apples

Question

Question10 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A short put option A long forward contract A short position in apples A plain vanilla swap A holding position in apples ResetMaximum marks: 1 Flag question undefined单项选择题

A

A short put option

B

A long forward contract

C

A short position in apples

D

A plain vanilla swap

E

A holding position in apples

BlackTom AI · Accepted Answer

The scenario describes Old McDonald selling apples that he does not currently hold or expect to harvest soon. This is characteristic of taking a short position in the apples, i.e., agreeing to deliver apples in the future without owning them now.
Option 1: 'A short put option' would involve selling a put option, which creates an obligation to buy apples at a strike price if the option is exercised by the holder. This does not describe selling apples now or a short exposure to the physical apples themselves, so it is not correct.
Option 2: 'A long forward contract' implies a commitment to buy apples at a future date for a predetermined price. That represents a long exposure to apples, not a position where one has sold apples they do not hold. Thus this option is incorrect for the described situation.
Option 3: 'A short position in apples' directly corresponds to selling apples not currently held and not expecting to harvest soon, creating a short exposure to the commodity. This matches the scenario precisely.
Option 4: 'A plain vanilla swap' involves exchanging cash flows, typically based on price or rate differences, and does not by itself represent a position in physically selling apples in the market. It is not the described action.
Option 5: 'A holding position in apples' would mean currently possessing apples, which contradicts the statement that he does not hold them and does not expect to harvest soon. Hence this is incorrect.

类似问题

Question1 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A short put option A plain vanilla swap A holding position in apples A short position in apples A long forward contract ResetMaximum marks: 1 Flag question undefined

Question1 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A short position in apples A plain vanilla swap A long forward contract A short put option A holding position in apples ResetMaximum marks: 1 Flag question undefined

Question1 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A long forward contract A holding position in apples A short put option A short position in apples A plain vanilla swap ResetMaximum marks: 1 Flag question undefined

Question5 Old McDonald has sold apples that he does not currently hold or expect to harvest anytime soon. He has entered into a: A short position in apples A short put option A long forward contract A plain vanilla swap A holding position in apples ResetMaximum marks: 1 Flag question undefined

Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $35 per share? The stock paid no dividends during the period, and assume no other transaction costs.

Shorting a stock, where you only make money if the stock goes down, has never been a successful investment strategy, based on the case studies we reviewed in class.

How does a short seller "cover" a short?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单