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The Establishment of a Futures Market in a Commodity Should

Question 54

Multiple Choice

The establishment of a futures market in a commodity should not have a major impact on spot prices because


A) the futures market is small relative to the spot market.
B) the futures market is illiquid.
C) futures are a zero-sum game.
D) the futures market is large relative to the spot market.
E) most futures contracts do not take delivery.

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