Futures markets in coal can signal which of the following kinds of information?
A) when the coal seams may run out
B) changes in the industrial demand for coal
C) the effect of the projected arrival of coal substitutes
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Futures markets in coal can signal all of the given kinds of information. The futures market can provide insight into when the coal seams may run out, as changes in the price of the futures contract can indicate scarcity or abundance of the underlying asset. The futures market can also reflect changes in the industrial demand for coal, as well as shifts in the energy landscape due to the projected arrival of coal substitutes.

Futures Markets in Coal Can Signal Which of the Following