Question

The price discovery process in a single commodity market is a result of ___________ in the...

The price discovery process in a single commodity market is a result of ___________ in the market.

Select one:

a. higher prices

b. a transaction

c. lower prices

d. competition between buyers and sellers

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Answer #1

Price discovery refers to the act of determining a common price for an asset. It occurs every time a seller and buyer interact in a regulated exchange. Because of the efficiency of the futures markets bid and ask prices are available to all participants and are instantly updated across the globe.

Price discovery is the result of the interaction between sellers and buyers, or in other words, between supply and demand and occurs thousands of times per day in the futures markets.

So D) option is a correct one

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