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:

Nominal

Referring to data classified into categories without a natural order or ranking among the categories.

Interval Data

A type of data that consists of numerical scores that exist on a scale with equal intervals between values but no true zero point.

Nominal Data

Categorical data that cannot be ordered or ranked in a meaningful way.

Ordinal Data

A type of categorical data with a set order or scale, but without a standard spacing between the categories.