A speculator in the futures market wishing to lock in a price at which they could ________ a foreign currency will ________ a futures contract.
A) buy; sell
B) sell; buy
C) buy; buy
D) none of the above

Question

Quizplus · Accepted Answer

A speculator wishing to lock in a price at which they could buy a foreign currency will buy a futures contract, as buying a futures contract secures a price for purchasing the underlying asset in the future.

A Speculator in the Futures Market Wishing to Lock in a Price