If a speculator is short and the price of the commodity rises,the individual 1.can expect a margin call
2)may take profits out of the position
3)may close the position at a loss

Question

Quizplus · Accepted Answer

If a speculator is short and the price of the commodity rises, they may close the position at a loss or take profits out of the position. They may also expect a margin call, but this is not guaranteed. Therefore, the best choice is B, which includes the two options that are most likely to occur.

If a Speculator Is Short and the Price of the Commodity