Entering a futures contracts is not speculative because commodity prices are stable.

Question

Entering a futures contracts is not speculative because commodity prices are stable.​

Quizplus · Accepted Answer

Entering a futures contract involves speculation because commodity prices are not always stable and can fluctuate based on various factors such as supply and demand, weather conditions, geopolitical events, and economic policies. Futures contracts allow individuals or businesses to bet on the future direction of commodity prices, which makes it a speculative activity.

Entering a Futures Contracts Is Not Speculative Because Commodity Prices