Factors other than war in the Middle East-e.g., OPEC decisions, oil discoveries, and the demand for oil-also impact oil futures, so the future price of oil is a:
A) pure signal of war in the Middle East.
B) mixed signal of war in the Middle East.
C) noisy signal of war in the Middle East.
D) signal of war in the Middle East.
Correct Answer:
Verified
Q162: Futures markets are often good predictors of
Q163: Speculation tends to _ volatility in quantity
Q164: Speculation tends to _ volatility in prices
Q165: If the futures price is much higher
Q166: If we observe that the price of
Q168: Which scenario shows a relatively noisy signal
Q169: An increase in the futures price of
Q170: A spot market allows for the exchange
Q171: Typically, speculation is carried out through:
A) participation
Q172: A forward market allows for the exchange
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