The maximum daily price increase that is permitted in the futures markets is
A) the daily limit
B) the daily range
C) $1 per contract
D) 5% per contract
Correct Answer:
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Q32: Speculators take the opposite positions of hedgers.
Q33: Hedging with commodity futures
A)reduces the risk of
Q34: Currency futures refer to contracts to buy
Q35: Futures contracts offer the advantage of
A)potential leverage
B)liquidity
C)safety
D)tax
Q36: Speculators who are short
A)expect prices to rise
B)are
Q38: Investing in futures is
A)investing in physical goods
B)entering
Q39: If a speculator is short and the
Q40: Hedging by using commodity futures locks in
Q41: One use for futures markets is "price
Q42: A swap agreement may be used to
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