Which of the Following Futures Contract Holders Is Speculating

question 90

Multiple Choice

Which of the following futures contract holders is speculating?

• A) A wheat farmer who sells wheat futures
• B) A cattle rancher who buys live cattle futures
• C) A candy maker who buys sugar futures
• D) An oil producer who sells crude oil futures

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Definitions:

Unpleasant Consequence

A negative outcome or result that follows a specific action or condition.

Negative Reinforcement

A process in behavioral psychology where the removal of an undesirable outcome strengthens the behavior leading to its removal.

Expectations

Beliefs or forecasts about future events, which can significantly influence current behavior and decision-making processes.

Desirable Behaviour

Actions or conduct that are considered advantageous, beneficial, or appropriate according to societal, organizational, or personal standards.