Glossary Terms

Question 1

Actuals

Answer 1

the physical, or cash, commodity. The goods underlying a futures contract.

Question 2

Arbitrage

Answer 2

the purchase of a commodity against the simultaneous sale of a commodity to profit from unequal prices. The two transactions may take place on different exchanges, between two different commodities, in different delivery months, or between the cash and futures markets.

Question 3

Backwardization

Answer 3

a pattern of prices over time in which futures prices are rising from a current level below the expected future spot price. This occurs over time as new information comes to the market.

Question 4

Basis

Answer 4

the difference between the cash price and the futures price of a commodity.

CASH − FUTURES = BASIS

Basis also is used to refer to the difference between prices at different markets or between different commodity grades.

Question 5

Bear Spread

Answer 5

sale of near-month futures contracts against the purchase of deferred-month futures contracts in expectation of a price decline in the near month relative to the more distant month. Example: selling a December contract and buying the more distant March contract.

Question 6

Beta

Answer 6

a measure correlating stock price movement to the movement of an index. Beta is used to determine the number of contracts required to hedge with stock index futures or futures options.

Question 7

Broker

Answer 7

an agent who executes trades (buy or sell orders) for customers. He receives a commission for these services. Other terms used to describe a broker include:
account executive (AE),
associated person (AP),
registered commodity representative (RCR),
NFA Associate.

Question 8

Bull Spread

Answer 8

the purchase of near-month futures contracts against the sale of deferred-month futures contracts in expectation of a price rise in the near-month relative to the deferred. One type of bull spread, the limited risk spread, is placed only when the market is near full carrying charges

Question 9

Call

Answer 9

the period at market opening or closing during which futures contract prices are established by auction.

Question 10

Call Option

Answer 10

a contract giving the buyer the right to purchase something within a specified period of time at a specified price. The seller receives money (the premium) for the sale of this right. The contract also obligates the seller to deliver, if the buyer exercises his right to purchase.

Question 11

Carrying Charges

Answer 11

the cost of storing a physical commodity, consisting of interest, insurance, and storage fees. Carrying costs usually are reflected in the difference between the futures prices for different delivery months.

Question 12

Cash Commodity

Answer 12

a physical commodity, as distinguished from a futures contract, which calls for the delivery of the “cash commodity” during the delivery period.

Question 13

Certificate of Deposit (CD)

Answer 13

a large time deposit with a bank, having a specific maturity date stated on the certificate. CDs usually are issued with $100,000 to $1,000,000 face values.

Question 14

Cleared Swap

Answer 14

any derivative contract trading cash flows or liabilities from two different financial instruments, and which has been submitted to and guaranteed by a CFTC-registered derivatives clearing organization. The most common swaps are interest rate swaps in which two parties agree to “swap” one stream of interest payments for another for a certain time period. There is a fixed rate the receiver requires to compensate for the floating rate (often the LIBOR) he/she will pay over time.

Question 15

Clearinghouse

Answer 15

an agency associated with an exchange which guarantees all trades, thus assuring contract delivery and/or financial settlement. The clearinghouse becomes the buyer for every seller, and the seller for every buyer.

Question 16

Clearing Member

Answer 16

a clearinghouse member responsible for executing client trades. Clearing members also monitor the financial capability of their clients by requiring sufficient margins and position reports.

Question 17

Commission

Answer 17

the fee which clearinghouses charge their clients to buy and to sell futures. The fee that brokers charge their clients is also called a commission.

Question 18

Commodity

Answer 18

a good or item of trade or commerce. Goods tradeable on an exchange, such as corn, gold, or hogs, as distinguished from instruments or other intangibles like T-Bills or stock indexes.

Question 19

Commodity Futures Trading Commission (CFTC)

Answer 19

the federal regulatory agency with exclusive jurisdiction over all futures trading. The CFTC is empowered to regulate (among others) the futures exchanges, futures commission merchants and their agents, floor brokers, and traders. The agency was created by the Commodity Exchange Act of 1974.

Question 20

Commodity Pool Operator (CPO)

Answer 20

an individual or firm who accepts funds, securities, or property for trading commodity futures contracts, and combines customer funds into pools. The larger the account, or pool, the more staying power the CPO and his clients have. They may be able to last through a dip in prices until the position becomes profitable. CPOs must register with the CFTC, and are closely regulated.

Question 21

Commodity-Product Spread

Answer 21

the simultaneous purchase (or sale) of a commodity and the sale (or purchase) of the products of that commodity. An example would be buying soybeans and selling soybean oil and meal. This also is known as a crush spread. Another example would be the crack spread, where the crude oil is purchased and gasoline and heating oil are sold.

Question 22

Commodity Trading Advisor (CTA)

Answer 22

a person or company who analyzes the markets and recommends trades. CTAs are required to be registered with the CFTC and to belong to the NFA.

Question 23

Contango

Answer 23

a pattern of prices over time in which futures prices are declining from their current level above the expected future spot price. This occurs over time as new information comes to the market.

Question 24

Contract

Answer 24

a legally enforceable agreement between two or more parties for performing, or refraining from performing, some specified act; e.g., delivering 5,000 bushels of corn at a specified grade, time, place, and price.

Question 25

Contrarian Theory

Answer 25

a theory suggesting that the general consensus about trends is wrong. The contrarian would take the opposite position from the majority opinion to capitalize on overbought or oversold situations.

Question 26

Conversion

Answer 26

for an investor who is long the physical and short synthetic futures, the sale of a cash position and investment of part of the proceeds in the margin for a long futures position. The remaining money would be placed in an interest-bearing instrument. This practice allows the investor/dealer to receive high rates of interest and take delivery of the commodity if needed.

Question 27

Conversion Factor

Answer 27

a figure published by the CBOT used to adjust a T-Bond hedge for the difference in maturity between the T-Bond contract specifications and the T-Bonds being hedged.

Question 28

Cover

Answer 28

used to indicate the repurchase of previously sold contracts as, he covered his short position. Short covering is synonymous with liquidating a short position or evening up a short position.

Question 29

Covered Position

Answer 29

a transaction which has been offset with an opposite and equal transaction; for example, if a gold futures contract had been purchased, and later a call option for the same commodity amount and delivery date was sold, the trader’s option position is “covered.” He holds the futures contract deliverable on the option if it is exercised. Also used to indicate the repurchase of previously sold contracts as, he covered his short position.

Question 30

Crack Spread

Answer 30

a type of commodity-product spread involving the purchase of crude oil futures and the sale of gasoline and heating oil futures.

Question 31

Crush Spread

Answer 31

a type of commodity-product spread which involves the purchase of soybean futures and the simultaneous sale of soybean meal and soybean oil futures.

Question 32

Day-traders

Answer 32

commodity traders (usually those active on the trading floor) who establish a futures position and offset that position on the same day.

Question 33

Delivery

Answer 33

the transportation of a physical commodity (actuals or cash) to a specified destination in fulfillment of a futures contract.

Question 34

Delta

Answer 34

the correlation factor between a futures price fluctuation and the change in premium for the option on that futures contract. Delta changes from moment to moment as the option premium changes.

Question 35

Discount

Answer 35

1) quality differences between those standards set in some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery, they are graded below the standard, and a lesser amount is paid for them. They are sold at a discount; 2) price differences between futures of different delivery months; 3) for short-term financial instruments, “discount” may be used to describe the way interest is paid. Short-term intruments are purchased at a price below the face value (discount). At maturity, the full face value is paid to the purchaser. The interest is imputed, rather than being paid as coupon interest during the term of the instrument; for example, if a T-Bill is purchased for $974,150, the price is quoted at 89.66, or a discount of 10.34% (100.00 − 89.66 = 10.34). At maturity, the holder receives $1,000,000.

Question 36

Discretionary Accounts

Answer 36

an arrangement in which an account holder gives power of attorney to another person, usually his broker, to make decisions to buy or to sell without notifying the owner of the account. Discretionary accounts often are called “managed” or “controlled” accounts.

Question 37

Eurodollar Time Deposits

Answer 37

U.S. dollars on deposit outside the U.S., either with a foreign bank or a subsidiary of a U.S. bank. The interest paid for these dollar deposits generally is higher than that for funds deposited in U.S. banks because the foreign banks are riskier—they will not be supported or nationalized by the U.S. government upon default.

Question 38

Even Up

Answer 38

to close out, liquidate, or cover an open position.

Question 39

Ex-Pit Transaction

Answer 39

legacy term from when all trading was required to be done by open outcry in the trading pits. Ex-pit transactions are limited to transferring open account positions from one broker to another, and Exchange Physcicals (EFP) via the delivery process.

Question 40

Federal Reserve Board

Answer 40

a board of Directors comprised of seven members which directs the federal banking system, is appointed by the President of the United States and confirmed by the Senate. The functions of the board include formulating and executing monetary policy, overseeing the Federal Reserve Banks, and regulating and supervising member banks. Monetary policy is implemented through the purchase or sale of securities, and by raising or lowering the discount rate—the interest rate at which banks borrow from the Federal Reserve.

Question 41

Financial Futures

Answer 41

include interest rate futures, currency futures and index futures. The financial futures market currently is the fastest growing of all the futures markets.

Question 42

Forward Contract

Answer 42

a contract entered into by two parties who agree to the future purchase or sale of a specified commodity. This differs from a futures contract in that the participants in a forward contract are contracting directly with each other, rather than through a clearing corporation. The terms of a forward contract are negotiated by the buyer and seller, while exchanges set the terms of futures contracts.

Question 43

Fundamental Analysis

Answer 43

the study of specific factors, such as weather, wars, discoveries, and changes in government policy, which influence supply and demand and, consequently, prices in the marketplace.

Question 44

Futures Commission Merchant (FCM)

Answer 44

a futures broker who maintains customer accounts, and orders trades on behalf of these customers.

Question 45

Futures Contract

Answer 45

a standardized agreement to purchase or to sell a set quantity and quality of a commodity at a specific time and place at a price determined on the exchange floor. The terms of the standardized agreement are set by exchanges.

Question 46

Government National Mortgage Association (GNMA)

Answer 46

a government organization which issues guaranteed certificates backed by VA and FHA mortgages.

Question 47

Hedging

Answer 47

transferring the risk of loss due to adverse price movement through the purchase or sale of contracts in the futures markets. The position in the futures market is opposite to the position held in the cash market; i.e., a long cash position is hedged with a short futures position (short hedge), and vice versa (long hedge).

Question 48

Interest Rate Futures

Answer 48

futures contracts traded on long-term and short-term financial instruments: Treasury debt (T-Bills, T-Notes, and T-Bonds), and other interest rate sensitive instruments such as 30-day Fed Funds, LIBOR, PIBOR, FIBOR, Eurdollar time deposit, etc.

Question 49

Inter-market Spread

Answer 49

a spread in the same commodity, but on different markets. An example of an inter-market spread would be buying a wheat contract on the Chicago Board of Trade, and simultaneously selling a wheat contract on the Kansas City Board of Trade.

Question 50

Intra-market Spread

Answer 50

a spread within a market. An example of an intra-market spread is buying a corn contract in the nearby month and selling a corn contract on the same exchange in a distant month.

Question 51

Intrinsic Value

Answer 51

the value of an option measured by the difference between the strike price and the market price of the underlying futures contract when the option is “in-the-money.” A COMEX 350 gold futures call would have an intrinsic value of $10 if the underlying gold futures contract is at $360/ounce.

Question 52

Inverted Market

Answer 52

a futures market in which near-month contracts are selling at prices that are higher than those for deferred months. An inverted market is characteristic of a short-term supply shortage. The notable exceptions are interest rate futures, which are inverted when the distant contracts are at a premium to near-month contracts.

Question 53

Law of Demand

Answer 53

demand exhibits a direct relationship to price. If all other factors remain constant, an increase in demand leads to an increased price, while a decrease in demand leads to a decreased price.

Question 54

Law of Supply

Answer 54

supply exhibits an inverse relationship to price. If all other factors hold constant, an increase in supply causes a decreased price, while a decrease in supply causes an increased price.

Question 55

Limit Orders

Answer 55

a customer sets a limit on price or time of execution of a trade, or both; for example, a “buy limit” order is placed below the market price. A “sell limit” order is placed above the market price. A sell limit is executed only at the limit price or higher (better), while the buy limit is executed at the limit price or lower (better).

Question 56

Limited Risk Spread

Answer 56

a bull spread in a market where the price difference between the two contract months covers the full carrying charges. The risk is limited because the probability of the distant month price moving to a premium greater than full carrying charges is minimal.

Question 57

Liquidate

Answer 57

refers to closing an open futures position. For an open long, this would be selling the contract. For a short position, it would be buying the contract back (short covering, or covering his short).

Question 58

Liquidity

Answer 58

refers to a market which allows quick and efficient entry or exit at a price close to the last traded price. This ability to liquidate or establish a position quickly is due to a large number of traders willing to buy and sell. The market is said to flow like liquid, or have liquidity.

Question 59

Long

Answer 59

the purchase of a futures contract, generally in anticipation of a price increase. Also, going net long. Long also is used to describe a person who has bought a futures contract or the physical cash commodity. A trader holding a long position hopes to profit from a price increase.

Question 60

Long-the-basis

Answer 60

a person who owns the physical commodity and hedges his position with a short futures position is said to be long-the-basis. He profits from the basis becoming more positive (stronger); for example, if a farmer sold a January soybean futures contract at $6.00 with the cash market at $5.80, the basis is −.20. If he repurchased the January contract later at $5.50 when the cash price was $5.40, the basis would then be −.10. The long-the-basis hedger profited from the 10¢ increase in basis.

Question 61

Maintenance Margin

Answer 61

the minimum level at which the equity in a futures account must be maintained. If the equity in an account falls below this level, a margin call will be issued, and funds must be added to bring the account back to the initial margin level. The maintenance margin level generally is 75% of the initial margin requirement.

Question 62

Margin

Answer 62

an amount of money deposited by futures contract buyers and sellers as “performance bond” or “earnest money,” insuring the performance of the terms of the contract. Margin is also required when writing an option on a futures contract.

Question 63

Margin Call

Answer 63

a call from the clearinghouse to a clearing member, or from a broker to a customer, to add funds to their margin account to cover an adverse price movement. The added margin assures the brokerage firm and the clearinghouse that the customer can purchase or deliver the entire contract, if necessary.

Question 64

Market Order

Answer 64

an order to buy or sell futures contracts as soon as possible at the best available price. Time is of primary importance, not price. Whatever the market price, the order should be executed now.

Question 65

Market-value Weighted Index

Answer 65

a stock index in which each stock is weighted by market value. A change in the price of any stock will influence the index in proportion to the stock’s respective market value. The value of each stock is determined by multiplying the number of shares outstanding by the stock’s market price per share; therefore, a high-priced stock with a large number of shares outstanding has more impact than a low-priced stock with only a few shares outstanding. The S&P 500 is a value weighted index.

Question 66

National Futures Association (NFA)

Answer 66

an organized group under the CFTC that requires membership for FCMs, their agents and associates, CTAs, and CPOs. This is a self-regulatory group similar to the National Association of Securities Dealers, Inc.

Question 67

Offsetting

Answer 67

eliminating the obligation to make or take delivery of a commodity by liquidating a purchase or covering a sale of futures. This is affected by taking an equal and opposite position: either a sale to offset a previous purchase, or a purchase to offset a previous sale in the same commodity, with the same delivery date. If an investor bought an August gold contract on the COMEX, he would offset this obligation by selling an August Gold contract on the COMEX. To offset an option, the same option must be bought or sold.

Question 68

Omnibus Account

Answer 68

an account carried by one Futures Commission Merchant (FCM) with another. The transactions of two or more individual accounts are combined in this type of account. The identities of the individual account holders are not disclosed to the second FCM. A brokerage firm may have an omnibus account including all its customers with its clearing firm.

Question 69

Open Outcry

Answer 69

oral bids and offers made in the trading rings, or pits. This method assures the buyer and seller that they will obtain the best price available. It is not similar to the over-the-counter market for securities where a market maker determines the price.

Question 70

Opening Range

Answer 70

a range of prices recorded at the official “opening” of a trading day.

Question 71

Opportunity Cost

Answer 71

the price paid for not investing in a different investment. It is the income lost from missed opportunities. Had the money not been invested in land, earning 5%, it could have been invested in T-Bills, earning 10%. The 5% difference is an opportunity cost.

Question 72

Option

Answer 72

a unilateral contract giving the buyer the right to buy or sell a commodity at a specified price within a certain time period. It is unilateral because only one party (the buyer) has the right to demand performance on the contract.

Question 73

Pit

Answer 73

the area on the trading floor of an exchange where futures trading takes place. The area is described as a “pit” because it is octagonal with steps descending into the center. Traders stand on the various steps, which designate the contract month they are trading. When viewed from above, the trading area looks like a pit.

Question 74

Pit Broker

Answer 74

a person on the exchange floor who trades futures contracts in the pits.

Question 75

Portfolio

Answer 75

the group of investments held by an investor.

Question 76

Position-traders

Answer 76

traders who establish a position and hold it for relatively long periods of time.

Question 77

Premium

Answer 77

1) the additional payment required for higher-than-required grades of a commodity delivered on a futures contract; 2) in reference to price relationships, the higher-priced commodity or contract is said to be at a premium over the lower-priced commodity or contract; 3) the price paid to purchase an option. This is also the money received when an option is sold (written).

Question 78

Price Weighted Index

Answer 78

a stock index weighted by adding the price of 1 share of each stock included in the index, and dividing this sum by a constant divisor. The divisor is changed when a stock split or stock dividend occurs because these affect the stock prices. The MMI is a price weighted index.

Question 79

Promotional Material

Answer 79

includes: 1. Any text of a standardized oral presentation, or any communication for publication in any newspaper, magazine or similar medium, or for broadcast over television, radio, or other electronic medium, which is disseminated or directed to the public concerning a futures account, agreement or transaction; 2. any standardized form of report, letter, circular, memorandum or publication which is disseminated or directed to the public; and 3. any other written material disseminated or directed to the public for the purpose of soliciting a futures account, agreement or transaction. Reprinted with permission from National Futures Association. Copyright 2003.

Question 80

Put

Answer 80

an option contract which reserves the right to sell something at a specified price within a certain period of time. A put is purchased in expectation of lower prices. If prices are expected to rise, a put may be sold.

Question 81

Pyramiding

Answer 81

purchasing additional contracts with the profits earned on open positions.

Question 82

Ratio Writing

Answer 82

when an investor writes more than one option to hedge an underlying futures contract. These options usually are written for different delivery months. Ratio writing expands the profit potential of the investor’s option position. Example: An investor would be ratio writing if he is long one August gold contract and he sells (writes) two gold calls, one for February delivery, the other for August.

Question 83

Registered Commodity Representative (RCR)

Answer 83

a person registered with the exchange(s) and the CFTC who is responsible for soliciting business, “knowing” his/her customers, collecting margin, submitting orders, and recommending and executing trades for customers. A registered commodity representative is sometimes called a “broker” or “account executive.”

Question 84

Reversal

Answer 84

for a person short the physical and long synthetic futures, borrowing to purchase the physical and shorting futures. This takes advantage of low interest rates and allows him to make delivery if necessary.

Question 85

Scalper

Answer 85

a speculator active on the floor of an exchange who buys and sells often to take advantage of small price fluctuations. This type of trading gives a great deal of liquidity to the market. Scalpers buy and sell often; therefore, they make it possible for others to enter or exit the market quickly. The term scalper arises from the fact that these traders attempt to “scalp” a small amount on a trade.

Question 86

Short

Answer 86

the sale of a futures contract. This sale is a legally enforceable agreement to make delivery of a specific quantity and grade of a particular commodity during a specified delivery period. This term also is used to describe someone who has sold a contract short.

Question 87

Short-the-basis

Answer 87

when a person or firm needs to buy a commodity in the future, they can protect themselves against price increases by making a substitute purchase in the futures market. The risk this person now faces is the risk of a change in basis (cash price minus futures price). This hedger is said to be short-the-basis because he will profit if the basis becomes more negative (weaker); for example, if a hedger buys a corn futures contract at 325 when cash corn is 312, the basis is −.13. If this hedge is lifted with futures at 320 and cash at 300, the basis is −.20, and the hedger has profited by the $.07 decrease in basis.

Question 88

Speculation

Answer 88

an attempt to profit from commodity price changes through the purchase and/or sale of commodity futures. In the process, the speculator assumes the risk that the hedger is transferring, and provides liquidity in the market.

Question 89

Spot

Answer 89

the market in which commodities are available for immediate delivery. It also refers to the cash market price of a specific commodity.

Question 90

Spreading

Answer 90

the purchase of one futures contract and the sale of another in an attempt to profit from the change in price differences between the two contracts. Inter-market, inter-commodity, inter-delivery, and commodity-product are examples of spreads.

Question 91

Statement of Additional Information

Answer 91

(1) If the CPO of a commodity pool prepares a Statement of Additional Information, the cover page must include the following: (i) The name of the commodity pool; (ii) A brief statement that the Statement of Additional Information is the second part of a two-part document and that it should be read in conjunction with the pool’s Disclosure Document, with instructions on how to obtain a free copy of the Disclosure Document; (iii) The date of the most recent Disclosure Document for the pool; and (iv) The date of the Statement of Additional Information. (2) The cover page must be immediately followed by a table of contents. (3) The Statement of Additional Information may also include: (i) Disclosures, not included in the Disclosure Document, that are required by the Securities and Exchange Commission or state securities administrators; (ii) Statements that expand on or explain the disclosures in the Disclosure Document, provided that the statements are not misleading or inconsistent with applicable statutes, rules, or regulations; and (iii) Any other information about the commodity pool; its investments; its CPO, CTA(s), service providers, and their principals and employees; the commodity futures markets; or any other markets, including cash markets, that affect the value of the pool’s investments, provided that the information is not misleading or otherwise inconsistent with applicable statutes, rules, or regulations. Reprinted with permission from National Futures Association. Copyright 2003.

Question 92

Stock Index Futures

Answer 92

based on stock market indexes, including Standard and Poor’s 500, Value Line, NYSE Composite, the Dow Jones Industrial Average, and the Nikkei 225 Index, these instruments are used by investors concerned with price changes in a large number of stocks or with major long-term trends in the stock market indexes.

Question 93

Stop Orders

Answer 93

an order which becomes a market order once a certain price level is reached. These orders are often placed with the purpose of limiting losses. They also are used to initiate positions. Buy stop orders are placed at a price above the current market price. Sell stop orders are placed below the market price; for example, if the market price for December corn is 320, a buy stop order could be placed at 320¼ or higher, and a sell stop could be placed at 319¾ or lower. A buy stop order is activated by a bid or trade at or above the stop price. A sell stop is triggered by a trade or offer at or below the stop price.

Question 94

Strike Price

Answer 94

the specified price at which an option contract may be exercised. If the buyer of the option exercises (demands performance) the futures contract positions will be entered at the strike price.

Question 95

Synthetic Position

Answer 95

a hedging strategy combining futures and futures options for price protection and increased profit potential; for example, by buying a put option and selling (writing) a call option, a trader can construct a position that is similar to a short futures position. This position is known as a synthetic short futures position, and will show a profit if the futures prices decline and receive margin calls if prices rise. Synthetic positions are a form of arbitrage.

Question 96

Technical Analysis

Answer 96

technical analysis uses charts to examine changes in price patterns, volume of trading, open interest, and rates of change to predict and profit from trends. Someone who follows technical rules (called a technician) believes that futures market prices will anticipate any changes in fundamentals.

Question 97

Time Value

Answer 97

the premium on an out-of-the-money option reflecting the probability that an option will move into the money before expiration constitutes the time value of the option. There also may be some time value in the premium of an in-the-money option, which reflects the probability of the option moving further into the money.

Question 98

Treasury Bills (T-bills)

Answer 98

short-term U.S. government debt instruments of three, six, or twelve-month maturities. T-Bills are a fixed-income asset issued at a discount. The face value is paid at maturity.

Question 99

Treasury Bonds (T-bonds)

Answer 99

long-term U.S. government debt instruments with maturities of more than 7 years. These are fixed-income assets that pay interest semi-annually.

Question 100

Variable Limits

Answer 100

most exchanges set limits on the maximum daily price movement of some of the futures contracts traded on their floors. They also retain the right to expand these limits if the price moves up or down the limit in one direction for two or three trading days in a row. If the limits automatically change after repeated limit moves, they are known as variable limits.

Question 101

Variation Margin Call

Answer 101

a margin call from the clearinghouse to a clearing member. These margin calls are issued when the clearing member’s margin has been reduced substantially by unfavorable price moves. The variation margin call must be met within one hour.

Question 102

Volatile

Answer 102

a market which often is subject to wide price fluctuations is said to be volatile. This volatility is often due to a lack of liquidity.

Question 103

Wash Sales

Answer 103

an illegal process in which simultaneous purchases and sales are made in the same commodity futures contract, on the same exchange, and in the same month. No actual position is taken, although it appears that trades have been made.

Question 104

Yield

Answer 104

the production of a piece of land; e.g., his land yielded 100 bushels per acre. 2) the return provided by an investment; for example, if the return on an investment was 10%, the investment yielded 10%.