When speculators invest in commodity futures, they
A) enter contracts to make future delivery
B) enter contracts to accept future delivery
C) either enter contracts to make or accept future delivery
D) rarely experience losses

Question

When speculators invest in commodity futures, they​
A) ​enter contracts to make future delivery
B) ​enter contracts to accept future delivery
C) ​either enter contracts to make or accept future delivery
D) ​rarely experience losses

Quizplus · Accepted Answer

Speculators can take either a long or short position on commodity futures contracts, meaning they can either agree to buy the commodity in the future (make delivery) or agree to sell the commodity in the future (accept delivery). It is important to note that speculators do not typically intend to take physical delivery of the commodity, but rather use futures contracts as a way to bet on the future market price movements of the commodity. Additionally, speculators can experience losses if the price of the commodity moves against their position.

When Speculators Invest in Commodity Futures, They​

When Speculators Invest in Commodity Futures, They