The spot price of a futures contract is different than the price for which an investor can buy the underlying commodity for immediate delivery. This represents an opportunity for ________.
A) arbitrage
B) hedging
C) speculation
D) loss leading

Question

Quizplus · Accepted Answer

The difference between the spot price and futures price offers an opportunity for arbitrage - the practice of buying an asset at a lower price in one market and selling it for a higher price in another market to make a profit.

The Spot Price of a Futures Contract Is Different Than