Multiple Choice
An individual who neither uses nor produces a commodity but buys 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) Is using arbitrage to earn profits without taking a risk.
D) Is hedging and transferring risk.
Correct Answer:
Verified
Correct Answer:
Verified
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