A method of buying in anticipation of price fluctuation in the commodity market is?

By: |Published on: Mar 14|Categories: Commerce WAEC| 0 comments

A. speculation
B. arbitrage
C. contango
D. hedging

Correct Answer: Option A

A. speculation

Explanation

Speculation in regards to commodity market is the purchase of a commodity with the hope and expectation that, they may be variation or changes in prices of the said product. This normally happens when there is fear that they may be an upward turn or increase in price in future.

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