The Activities of Speculators Are Necessary in the Futures Markets

question 2

Multiple Choice

The activities of speculators are necessary in the futures markets in order to:

• A) prevent hedgers from trading options.
• B) provide a continual stream of profit to hedgers.
• C) maintain futures prices at appropriate levels.
• D)understand the direction of future price changes.

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Definitions:

Profession

A vocation founded upon specialized educational training, the purpose of which is to supply disinterested objective counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain.

Breach of Contract

Occurs when one party in a binding agreement fails to deliver according to the terms of the agreement.

Noble Roman's

A franchise-based pizza and sub restaurant chain known for its focus on quality ingredients and traditional preparation methods.

Specific Performance

A legal remedy requiring a party to perform a specific act, usually fulfilling a contractual agreement, rather than paying damages for failing to perform.