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The Basic Difference Between Speculators and Hedgers in Futures Contracts

Question 22

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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