Which One of the Following Futures Contract Holders Is Speculating

question 65

Multiple Choice

Which one of the following futures contract holders is speculating?

• A) A wheat farmer who sells wheat futures
• B) A cattle rancher who buys live cattle futures
• C) A candy maker who buys sugar futures
• D) An oil producer who sells crude oil futures

---

Definitions:

Coupon Payment

A periodic interest payment to bondholders, typically paid semi-annually.

Priced

The process of determining the value of a financial instrument or asset, often based on market conditions and perceived value.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate. It is a static value, unlike market value which can fluctuate.

Market Price

The present cost at which a product or service can be purchased or traded within a market.