A Hedger Who Buys a Futures Contract Is Betting That

question 50

Multiple Choice

A hedger who buys a futures contract is betting that prices will _____ at the expiration of the contract.

• A)Decrease
• B)Increase
• C)Remain constant
• D)Guarantee high profits

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Definitions:

Researchers

Individuals engaged in the systematic investigation to establish facts or principles or to collect information on a subject.

Tailoring Communication

Adapting communication styles and content to suit the specific preferences, culture, or expectations of the audience.

Framing

Means tailoring communication in ways to encourage certain interpretations and discourage others.

Human Behavior

Refers to the range of actions and mannerisms exhibited by humans in conjunction with their environment or social structures.