Holding futures position overnight?

Vignette: The London FTSE100 is currently trading at 4720. You are a U.S. Investment Manager in charge of a large international portfolio. You have collected the following information: Domestic risk-free rate 3.50% London risk-free rate 4.25% Foreign exchange rate $2.100 FTSE dividend yield 1.75% Question: Which of the following futures traders will be most likely to hold a futures position overnight? I. Position trader II. Day trader III. Scalper a) I, II, & III b) I & II c) II only d) I only

D. The scalper will probably trade his position within a few hours. The day trader usually closes his position at the end of the day.

D… Position trader will hold is the only one here that will hold a position for longer than one day.

Both of you are correct. Answer is D ---------------------------- Correct answer: I only Rationale: Position traders trade positions over time periods in excess of a day. Day traders close out their positions by the end of the day. Scalpers transact rapidly, trying to buy bids and sell asks. ----------------------------