Which of the Following Is NOT a Way That Hedgers

question 41

Multiple Choice

Which of the following is NOT a way that hedgers can benefit by participating in financial futures markets?

• A)They can reduce their tax liabilities.
• B)They can reduce their exposure to price fluctuations.
• C)They can access liquid markets.
• D)They can reduce their information costs by using organized exchanges.

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Definitions:

First Amendment

A provision of the United States Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.

Commission

A fee or percentage of a transaction value paid to an agent or broker for facilitating sales, services, or other transactions.

Licensing Agreement

A formal agreement wherein a licensor grants the rights to its intellectual property to a licensee for a specified period.

Royalties

Royalties are payments made to copyright or patent holders, or to authors and musicians, as compensation for the use of their original work.