Why Do Investors Hedge Using Futures Contracts

question 93

Multiple Choice

Why do investors hedge using futures contracts?

• A) they are seeking to increase liquidity
• B) they are willing to pay for a reduction in risk
• C) in order to provide a counterparty to speculators
• D) they are more flexible than forward contracts

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Definitions:

Male Hypoactive Sexual Desire Disorder

A condition characterized by persistently low or absent sexual desire or fantasies in men, which cannot be explained by other medical conditions or drugs.

Heterosexual Man

A man who is sexually attracted exclusively to individuals of the opposite sex.

Uninterested in Sex

A state or condition where an individual lacks desire or does not feel like engaging in sexual activities.

Erectile Disorders

Difficulty with erections during partnered sexual activity.