Which of the following does not apply to a speculator in the futures markets?
A) In contrast to hedgers, speculators buy or sell futures contracts in an attempt to earn a return.
B) Speculators are willing to assume the risk of price fluctuations hoping to profit from them.
C) Speculators transact in the commodity underlying the futures contract.
D) Speculators contribute to the liquidity of the market and reduce the variability in prices over time.

Question

Quizplus · Accepted Answer

Speculators typically do not deal with the physical commodity itself; instead, they trade futures contracts to profit from price movements.

Which of the Following Does Not Apply to a Speculator