The following ad ran on the radio: Listeners, doesnt it stand to reason that gasoline prices will

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The following ad ran on the radio: “Listeners, doesn’t it stand to reason that gasoline prices will go up in summer when more people are driving? And doesn’t it stand to reason that the best time to buy futures in gasoline is in winter before gasoline prices go up? So listen to reason: Buy a gasoline futures contract in the winter!” (Note: A futures contract guarantees delivery of a commodity at a certain price.

If you buy a futures contract guaranteeing a price of $1.00 a gallon and its price then rises to $1.20, you will make 20¢ per gallon. That adds up to a lot when the futures contract is for 42,000 gallons.) What is wrong with the logic of this commercial?

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