Futures Contracts Can Be Used For

question 39

Multiple Choice

Futures contracts can be used for:

• A)hedging exposures to volatile financial variables
• B)speculating on the increase in the value of the contract item
• C)speculating on the decrease in the value of the contract item
• D)hedging the risk of an adverse movement in the future spot price.
• E)All of these.

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Definitions:

Employer association

An organization of employers united to promote their collective business interests and negotiate with unions.

Industry-wide bargaining

Collective bargaining negotiations that occur at the industry level, covering all employers and employees within that industry.

Germany

A country in Central Europe known for its rich history, cultural heritage, and significant economic power.

Codetermination

A practice where workers have a say in the management of a company through participation in its boards or committees, promoting more democratic workplace governance.