Multiple Choice: Each question is worth 3 points . If you wanted to settle a trade in the actual physical commodity, which type of contract would you most likely use? A. Forward contract. B. Futures contract. C. Call option. D. Put option. 2. In your trading simulation competition, you are making either flat price, relative value, or timing trades. Which of the following is the only trade scenario that would make sense? A. A flat price trade where you go long WTI for December and also short WTI for March. B. A timing trade where you go long WTI for December and short RBOB for March C. A relative value trade where you go long WTI and also go long Brent. D. A timing trade where you go long WTI for December and short WTI for March E. All of these trading scenarios make sense. What is the crack spread for a refinery? A. The difference in price between gasoline and heating oil. B. The difference in price between WTI and Brent crude oil. C. The difference in price between the refined products and crude oil. D. The difference in price between natural gas and heating oil. " What is the process that separates crude oil into its various components? A. Processing. B. Treating. C. Separating. D. Refining E. Distilling. 4. What is a benefit of using an over-the-counter (OTC) contract vs, an exchange traded contract? A. OTC contracts are standardized for each commodity. B. OTC contracts have much lower counterparty risk. C. OTC contracts can be traded much faster than an exchange traded contract. D. None of the above are benefits of OTC contracts. 5