If there is an excess of market participants who want to buy the futures as a hedge,then:
A) speculators will come into the market to sell the futures.
B) speculators will see a potential profit from also buying the futures.
C) speculators will steer clear of the futures market.
D) the market may have to close down until there is a balance of supply and demand.

Question

Quizplus · Accepted Answer

Speculators often enter the market to provide liquidity and balance supply and demand. If there is excess demand from hedgers wanting to buy, speculators will sell to meet this demand, hoping to profit from price changes.

If There Is an Excess of Market Participants Who Want