Futures contracts:
A) allow individuals to speculate in various markets without having to store the product.
B) typically increase risk.
C) almost always result in the delivery of the product.
D) decrease economic efficiency by skewing the information delivered by prices.

Question

Quizplus · Accepted Answer

Futures contracts allow individuals to speculate on the price movements of various commodities, such as oil or gold, without having to physically store the product. This can help to reduce the costs and risks associated with storing and transporting the underlying asset.

Futures Contracts