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Which of the following speculators expect fall in the prices of securities in the near future?
Answer & Solution
Correct Answer:
Option
B
Bear speculators expect fall in the prices of securities in the near future. A bear is a pessimistic speculator who expects a sharp fall in the prices of certain securities. He enters into selling contracts in certain securities on a future date. If the price of the security falls as he expects he shall get the price difference.
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