Investing in futures is
A) investing in physical goods
B) entering into contracts for future delivery
C) executing contracts for prior delivery
D) selling a contract in anticipation of price increases
Correct Answer:
Verified
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
Q37: The maximum daily price increase that is
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
Q43: Investors acquiring gold futures contracts
A)do not have
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