Hedging using commodity futures locks in a price for the supplier of a commodity.
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Q22: If speculators anticipate interest rates will rise,
Q26: A currency swap is an agreement to
Q28: Currency futures refer to contracts to buy
Q29: The cost of carrying a commodity suggests
Q30: If an individual has a long position
Q31: A swap agreement converts a futures contract
Q32: Programmed trading (index arbitrage)transfers changes in the
Q34: The maximum daily price increase that is
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
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