An Individual Who Neither Uses nor Produces a Commodity but Sells

question 118

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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Definitions:

Situational Supports

External resources or aids available to an individual in specific situations to cope with stressors or challenges.

Mental Health Practitioner

A professional specializing in diagnosing, treating, and supporting individuals with mental health issues and disorders.

Crisis Situations

Events or periods characterized by sudden, severe problems or dangers that require immediate action to prevent or mitigate negative outcomes.

Common Set Of Boundaries

Established limits or guidelines within which individuals are expected to operate, often set to maintain professionalism and respect in various settings.