A Futures Contract Eliminates Uncertainty About the Future Spot Price

question 19

True/False

A futures contract eliminates uncertainty about the future spot price that an individual can expect to pay for an asset at the time of delivery.

---

Definitions:

Two-Dimensional Model of Power

A framework for understanding power dynamics that incorporates both direct decision-making and the ability to control the agenda and prevent issues from being debated.

Non-Decisions

involve situations where potential issues or alternatives are prevented from becoming actual agenda items or subjects of decision-making, often reflecting power dynamics.

Bachrach and Baratz

Two political scientists known for their theory on power and decision-making, particularly the concept of nondecision-making as a form of power.