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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Definitions:

Quantitative Research

A data-collection process that focuses on a numerical analysis of people’s responses or specific characteristics.

Face-To-Face Interviews

A method of data collection where the interviewer and respondent interact directly in person.

Nonprobability Sample

A sampling method where not all members of a population have an equal chance of participating in the study, often leading to bias.

Field Researchers

Professionals who conduct research outside of a laboratory setting, gathering data directly from natural or real-world environments.