Derivatives Can Be Used to Either Hedge or Speculate

question 11

Multiple Choice

Derivatives can be used to either hedge or speculate. These actions:

• A) increase risk in both cases.
• B) decrease risk in both cases.
• C) spread or minimize risk in both cases.
• D) offsets risk by hedging and increase risk by speculating.
• E) offset risks by speculating and increase risk by hedging.

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