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When considering hedgers and speculators, which of the following would be TRUE of the strategies utilized by them within the futures marketplace? Group of answer
When considering hedgers and speculators, which of the following would be TRUE of the strategies utilized by them within the futures marketplace?
Group of answer choices
all of these are true
The user of a commodity, being short that commodity, buys futures in that commodity.
The producer of a commodity, being long that commodity, sells futures in that commodity.
The speculator, believing commodity prices will rise, buys a futures contract establishing a long position in that commodity.
The speculator, believing commodity prices will fall, sells a futures contract, establishing a short position in that commodity.
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