The Basic Difference Between Speculators and Hedgers in Futures Contracts

question 8

Multiple Choice

The basic difference between speculators and hedgers in futures contracts is that speculators:

• A) will profit regardless of the direction of price change.
• B) are not protecting their commodity holdings.
• C) are concerned only with long-term price movements.
• D)take a position in more than one commodity at a time.

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Definitions:

Calcium Intake

The amount of calcium consumed in one's diet, critical for building and maintaining strong bones and teeth, and necessary for various bodily functions.

Protein Intake

The amount of protein consumed in one's diet, crucial for muscle repair, growth, and overall health.

Five Food Groups

The categories that represent a balanced diet: fruits, vegetables, grains, protein foods, and dairy.

Ethnic Food Choices

The preference for foods that are traditional or characteristic of the cuisine of a particular ethnic group or culture.