If Investors Speculate in Derivative Contracts Rather Than in the Underlying

question 40

Multiple Choice

If investors speculate in derivative contracts rather than in the underlying asset, they will probably achieve ____ returns, and they are exposed to relatively ____ risk.

• A)lower; lower
• B)lower; higher
• C)higher; lower
• D)higher; higher

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Definitions:

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The process of securing a place for vehicles to be parked, often relevant in business settings where customer access requires convenient parking solutions.

Process Layout

An arrangement of resources in production or service areas based on the sequence of operations or tasks, aiming to maintain smooth workflow and efficiency.

Aircraft

A vehicle designed for air travel, equipped with wings and engines, that can carry people or cargo through the atmosphere.

Shipbuilders

Individuals or companies engaged in the construction of ships and other floating vessels.