A buyer of a futures contract benefits if the price of the commodity increases.

Name: A buyer of a futures contract benefits if the price of the commodity increases.
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Question

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When a buyer purchases a futures contract, they are hoping for the price of the underlying commodity to increase, as this will allow them to buy the commodity at a lower price than the market value at the time the contract was purchased. They can then sell the commodity at the higher market value and profit from the difference.

A Buyer of a Futures Contract Benefits If the Price