Question

Suppose that everyone believes war is about to break out in the Middle East, decreasing the...

Suppose that everyone believes war is about to break out in the Middle East, decreasing the supply of oil. One should:

Select one: a. speculate at random.

b. do nothing; prices already reflect that information.

c. sell oil futures because the reduced oil supply will decrease the price of oil.

d. buy oil futures because the reduced oil supply will raise the price of oil.

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