Speculators who think that a war in the Middle East is likelywill:
A)sell oil futures, pushing up the future price.
B)buy oil futures, pushing down the future price.
C)sell oil futures, pushing down the future price.
D)buy oil futures, pushing up the future price.(True Answer )Correct

Question

Quizplus · Accepted Answer

If speculators believe that a war in the Middle East is likely, they will anticipate that the supply of oil will be disrupted and the demand will remain high, driving up the price of oil. Therefore, they will buy oil futures contracts to profit from the expected price increase, which will push up the future price.

Speculators Who Think That a War in the Middle East