A method of buying in anticipation of price fluctuation in the commodity market is?
-
A.
speculation -
B.
arbitrage -
C.
contango -
D.
hedging
Correct Answer: Option A
Explanation
Speculation in regards to commodity market, is the purchase of a commodity with the hope and expectation that, they maybe variation or changes in prices of the said product. This normally happens when there is fear that they maybe an upward turn or increase in price in future.