In the context of the provided content, what does it mean to have a "directional view" on an asset's price?

Understanding the historical price trends of the asset Predicting the future direction (up or down) of the asset's price Analyzing the asset's financial statements to assess its intrinsic value Comparing the asset's price to its competitors in the market

What is the primary motivation for a trader to enter into a futures agreement, as per the text?

Hedging against potential price fluctuations in the underlying asset Gaining ownership of the underlying asset at a predetermined price Generating financial profit based on the price movement of the underlying asset Diversifying their investment portfolio with different asset classes

Why did the author of the content believe that the market's reaction to the TCS management's statement was exaggerated?

The December quarter is typically a slow period for Indian IT companies due to holidays and financial year-end in the US The management's statement was overly pessimistic and did not accurately reflect the company's financial health The author believed that the stock price had already factored in the potential for slower revenue growth The author had insider information suggesting that the company's performance would exceed expectations

What is the term used to describe the process of closing out an existing futures position before the contract's expiry date?

Liquidation Settlement Square off Expiration