Mortimer is preparing an agreement to buy a large amount of oranges at their current prices. Due to an early freeze in Florida, he believes prices will soon increase significantly. Mortimer is most likely participating in
A) exchange trading.
B) asset allocation.
C) commodity trading.
D) buying and holding
E) sinking-fund trading.

Question

Quizplus · Accepted Answer

Mortimer is engaging in commodity trading because he is buying a large amount of oranges (a commodity) with the expectation that their prices will increase due to external factors (an early freeze in Florida).

Mortimer Is Preparing an Agreement to Buy a Large Amount