Speculators want futures contracts to be incorrectly priced; hedgers want them to be correctly priced. Why?
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“Speculators want futures contracts to be incorrectly priced; hedgers want them to be correctly priced.” Why?
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Think of Legs Diamonds problem If futures are underpriced he will sti...View the full answer
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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