Hedging by using commodity futures locks in a price for the supplier of a commodity.
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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
Q38: Investing in futures is
A)investing in physical goods
B)entering
Q39: If a speculator is short and the
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
Q44: If an individual expected securities prices to
Q45: The futures price of gold is $1,000.
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