The Basic Difference Between Speculators and Hedgers in Futures Contracts

question 14

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) do not have an offsetting position in the underlying commodity.
• 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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