The establishment of a futures market in a commodity should not have a major impact on spot prices because
A) the futures market is small relative to the spot market.
B) the futures market is illiquid.
C) futures are a zero-sum game.
D) the futures market is large relative to the spot market.
E) most futures contracts do not take delivery.
Correct Answer:
Verified
Q42: Futures contracts are regulated by
A) the Commodities
Q43: Given a stock index with a value
Q44: Delivery of stock index futures
A) is never
Q45: If a trader holding a long position
Q46: Taxation of futures trading gains and losses
A)
Q48: Speculators may use futures markets rather than
Q49: The process of marking to market
A) posts
Q50: On January 1, you bought one April
Q51: Open interest includes
A) only contracts with a
Q52: On April 1, you sold one S&P
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