Which of the Following Is Not Correct About Hedging Speculators

question 47

Multiple Choice

Which of the following is not correct about hedging speculators?

• A) They charge a fee for their services.
• B) They are the counterparty to a risk management derivatives contract.
• C) They take risks which they mitigate by having superior knowledge of the market they trade in.
• D) They provide professional management.

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Definitions:

Customer Relations

The management and maintenance of relationships between a business and its customers, focusing on communication and meeting customer needs.

Frontline Managers

Managers who directly supervise and support employees working on the core business activities of an organization.

Operating Employees

Workers who are directly involved in the day-to-day operations of an organization, typically responsible for executing tasks and processes.

External Environment

All outside factors and influences that impact an organization's decision-making process and overall success, including economic, legal, and technological changes.