You are a trader reading the news over the weekend. You read that the attacks in the Middle East are getting worse and are worried about supply being disrupted and reduced, particularly for commodities. Which is most likely for me to do when the market opens?

Question

BlackTom AI · Accepted Answer

When news suggests worsening Middle East attacks and potential supply disruption for commodities, a trader anticipates higher prices at the market open.

Option: Use a trading platform to buy a future on oil on the exchange. This choice reflects a proactive move to gain from an expected price rise by taking a long position in oil futures, which are standard instruments for hedging or speculating on near-term supply shocks.

Why this aligns with the scenario: Futures on oil are traded on exchanges and are a common vehicle for traders to express a view that prices will increase due to potential supply constraints. Entering a long futures position provides exposure to rising prices and can be executed quickly via a trading platform, which is exactly what a trader would consider in response to such news.

Why other possibilities (if any) might be less likely: If there were other options, you would assess them by whether they page into the same risk/reward profile. For instance, attempting to sell futures would imply expecting a price drop, which contradicts the concern about supply disruption. Holding cash or avoiding action would miss the opportunity to hedge or profit from the anticipated move. However, since only the one option is presented, the justification focuses on why buying oil futures is the most plausible immediate action given the described risk signal.

You are a trader reading the news over the weekend. You read that the attacks in the Middle East are getting worse and are worried about supply being disrupted and reduced, particularly for commodities. Which is most likely for me to do when the market opens?单项选择题

类似问题

Name the Supreme Court decision that removed financial constraints on PACs.

Political scientists Joshua Kalla and David Broockman find that senior policy makers made themselves available to _____ between three and four times more often than they did to constituents.

Name the political scientist who argues that parties are designed to serve the needs of ambitious politicians (namely candidates and officeholders).

Name the political scientist who said this famous quote about the problems of pluralism: “The flaw in the pluralist heaven is that the heavenly choir sings with a strong upper-class accent.”

What is the name of the third party candidate in 2000 who was not allowed to participate in the presidential debates? Hint: We watched a video clip with him in class.

E.E. Schattshneider said, "Democracy is ________ save in terms of the parties."

Who was the most recently appointed justice to the Supreme Court?

Name the landmark Supreme Court case that struck down spending limits in federal elections.

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