Which statement best describes who benefits from basis strengthening over a hedge with a futures contract?
A. Buyers gain, sellers lose
B. Buyers lose, sellers gain
C. Both gain
D. Neither gains or loses since they have offset their basis risk by hedging
Ans: B. Buyers lose, sellers gain
You might also like to view...
Supply and demand curves both
a. have negative slopes b. have positive slopes c. relate quantities to prices d. reflect the actions of producers e. reflect the actions of consumers
When output exceeds its full-employment level,
A) the short-run aggregate supply function shifts up. B) wages fall. C) the short-run aggregate supply function shifts down. D) aggregate supply exceeds aggregate demand.
Currently, the FDIC insures deposits up to a limit of
A) $1000. B) $100,000. C) $250,000. D) $1,000,000.
Which of the following is most likely to reduce structural unemployment?
a. A reduction in wage rates b. Access to better information on local job openings c. Retraining workers in marketable skills d. Promotion of full employment through government stabilization policies e. Reducing the cost of job loss through enhanced unemployment benefits