A Speculator, Not a Hedger, Would Purchase a Futures Contract

question 16

True/False

A speculator, not a hedger, would purchase a futures contract even though they had no interest or ownership in the underlying asset.

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Definitions:

Revenue

The entire sum of money earned from selling goods or services that are central to a company's main business activities.

Flexible Budget

A budget designed to vary in response to different levels of volume or activity.

Revenue

The income generated from normal business operations, such as the sale of goods or services.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms.