Companies That Attempt to Exploit Inefficiencies in Various Derivative Markets

question 49

Multiple Choice

Companies that attempt to exploit inefficiencies in various derivative markets by attempting to lock in profits by simultaneously entering into transactions in two or more markets are called

• A) arbitrageurs.
• B) gamblers.
• C) hedgers.
• D) speculators.

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Definitions:

Social Trap

Situations where individuals or groups act against their long-term communal interests by pursuing short-term personal gains.

Superordinate Goals

Common goals that can only be achieved by two or more groups working together, thus promoting cooperation and reducing conflict between the groups.

GRIT

A psychological trait that describes an individual's perseverance and passion for long-term goals.

Homosexual

Pertaining to sexual attraction or sexual activity between members of the same sex or gender.