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:

Script

A sequence of behaviors, roles, and norms that are expected in a particular context or situation.

Restaurant Script

A restaurant script is a sequence of expected behaviors, actions, and procedures that individuals follow in the context of dining in a restaurant, based on societal norms and personal experiences.

Expectation

The belief that a specific event will occur in the future, often influencing one's perception and behavior toward that anticipated event.

Hostess

A woman who receives or entertains guests in a social or official capacity.