The Activities of Speculators Are Necessary in the Futures Markets

question 98

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:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Elementary School

An educational institution where children receive the first stage of compulsory education known as primary or elementary education.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, used to quantify the amount of variation or spread in a set of data values.

Sampling Distribution

A statistical distribution that outlines the probabilities of a certain statistic coming from a random sample.