A Speculator Who Buys a Futures Contract Is Betting That

question 79

Multiple Choice

A speculator who buys a futures contract is betting that prices will _____ by the expiration of the contract.

• A) decrease
• B) increase
• C) remain constant
• D) guarantee high profits

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Definitions:

Tectonic Plates

Massive, irregularly shaped slabs of solid rock composing the Earth's lithosphere, whose movements cause earthquakes, volcanic eruptions, and the formation of mountains.

Molten Rock

Liquid rock usually found beneath the Earth's surface, also known as magma when underground and lava when it emerges on the surface.

Advancing Edge

Refers to the forefront or leading front of something moving forward or expanding, commonly used in contexts involving growth, innovation, or the spread of phenomena.

Tectonic Plates

Massive sections of Earth's lithosphere that move, interact, and change over time, significantly influencing the planet's geological features.