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:

Autism

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted and repetitive behavior.

Socially Interact

The process of engaging and communicating with others in a society, forming relationships and networks.

Cognitive Therapy

A type of psychotherapy aimed at changing negative patterns of thinking to improve mood and behavior.

Negative Interpretations

The cognitive bias or tendency to perceive situations or information in a detrimental or pessimistic way.