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An Individual Who Neither Uses nor Produces a Commodity but Sells

Question 43

Multiple Choice

An individual who neither uses nor produces a commodity but sells a futures contract for the asset is:


A) Speculating that the price of the commodity is going to fall.
B) Speculating that the price of the commodity is going to increase.
C) Hedging trying to transfer risk.
D) Using arbitrage to earn profits without taking a risk.

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