If the Futures Price Is Much Higher Than the Spot

question 158

Multiple Choice

If the futures price is much higher than the spot or current price, that is a sign that smart people with their own money on the line think that:

• A) there will be an excess supply in the near future.
• B) supply disruptions may soon occur.
• C) demand will decrease rapidly in the future.
• D) supply will be stable in the near future.

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Definitions:

Web-based HR

Refers to the use of online platforms and tools for managing human resources processes and activities, offering accessibility and efficiency improvements.

Replacement Planning

A component of succession planning focusing on identifying immediate backup candidates for key positions to ensure minimal disruption in case of sudden vacancies.

Operational Efficiency

Refers to the ability of an organization to deliver products or services to its customers in the most cost-effective manner while maintaining high-quality standards.

Transactional Activities

Business processes that involve exchanges or transactions between parties, such as sales, purchases, and payments.