4. Which is true?

a. A hedger uses future contracts to protect against price movement

b. A speculator uses a futures contract to protect against price movement

c. A hedger uses a futures contract to profit from future price movement.

d. A speculator will short a contract if it is expected to increase in price.

5. The amount deposited in a futures account before entering a futures contract is called:

a. Required margin

b. Initial margin

c. Market margin

d. Maintenance margin

6. Opening a position means

a. Buying a contract

b. Selling a contract

c. Either buying or selling contracts which reduces equity exposure

d. Either buying or selling which increases equity exposure