Speculators may use futures markets rather than spot markets because
A)transactions costs are lower in futures markets.
B)futures markets provide leverage.
C)spot markets are less efficient.
D)futures markets are less efficient.
E)transactions costs are lower in futures markets and futures markets provide leverage.

Question

Quizplus · Accepted Answer

Futures markets allow speculators to benefit from leverage and minimize transactions costs.Both markets should be equally price efficient.

Speculators May Use Futures Markets Rather Than Spot Markets Because