WAEC Commerce 2018 Question 31

Question 31

Stock Exchange

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

  1. A.speculation.
  2. B.arbitrage.
  3. C.contango.
  4. D.hedging.
Show the answer and explanation

Answer: A (speculation.)

Explanation

Speculation is buying or selling in expectation of a change in price in order to make a profit.