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The Basic Difference Between Speculators and Hedgers in Futures Contracts

Question 59

Multiple Choice

The basic difference between speculators and hedgers in futures contracts is that speculators:


A) will profit regardless of the direction of price change.
B) are not protecting their commodity holdings through an offsetting transaction.
C) are concerned only with long-term price movements.
D) take a position in more than one commodity at a time.

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