Explain why a futures contract can be used for either speculation or hedging.

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Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Question Posted: Jan 20, 2016 08:43 AM

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Explain why a futures contract is a zero-sum game between the long and short positions.
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Explain why a futures contract can be used for either speculation or hedging.

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If an investor has an exposure to the price of an asset he or she can hedge wit...View the full answer

Fundamentals of Futures and Options Markets

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