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:

Role Transition

The process of changing from one role to another, which may involve different responsibilities, behaviors, and social expectations.

Evaluation

The systematic determination of merit, value, or significance of something, based on criteria and standards.

Group Cohesiveness

The extent to which members of a group are bonded together and commit to remaining part of the group.

Dissonance Reduction

The process of alleviating cognitive dissonance by adjusting, adding, or minimizing the importance of cognitions (thoughts, beliefs).