The Basic Difference Between Speculators and Hedgers in Futures Contracts

question 59

Multiple Choice

The basic difference between speculators and hedgers in futures contracts is that speculators:

• A)will profit regardless of the direction of price change.
• B)are not protecting their commodity holdings through an offsetting transaction.
• C)are concerned only with long-term price movements.
• D)take a position in more than one commodity at a time.

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Definitions:

Effective Leadership Style

The manner or approach of leading that successfully inspires and guides individuals or groups towards achieving organizational goals.

Situation

A set of circumstances or a scenario in which individuals find themselves, affecting their behavior and decision-making.

Main Limitation

the primary constraint or shortcoming that restricts effectiveness, progress, or development in a certain context or system.

Consideration

A leadership behavior characterized by showing concern and respect for followers, looking out for their welfare and creating a friendly work environment.