If Investors Speculate in the Underlying Asset Rather Than in Derivative

question 22

Multiple Choice

If investors speculate in the underlying asset rather than in derivative contracts on 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:

Primatology

The scientific study of primates, including their behavior, biology, evolution, and ecology.

Fossil Primates

Prehistoric members of the primate order found as fossils, which provide insights into the evolution and development of modern primates, including humans.

Right-Handed

A preference for using the right hand for tasks and activities, which is the most common handedness in humans.

Left-Handed

The characteristic of using the left hand more naturally and effectively than the right for daily tasks and activities.