Question

Commodity futures contracts can be bought and sold on the open market for which reason?

a. commodity purchase contracts can be renegotiated at a future time in case the commodity isn't available.


b. currency-exchange rates fluctuate, changing the amount of profit that can be made on a particular commodity.


c. futures contracts remain valid even if the original parties to the contract sell the rights.


d. unsold commodities will be bought at fair market value by the federal government.

Answer 1

Commodity futures contracts can be bought and sold on the open market as C. futures contracts remain valid even if the original parties to the contract sell the rights.

What is an open market?

It should be noted that an open market simply means the market where securities are bought and sold.

In this case, commodity futures contracts can be bought and sold on the open market as futures contracts remain valid even if the original parties to the contract sell the rights.

Learn more about open market on:

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