Those Who Invest in Derivative Instruments with the Purpose of Increasing

question 33

Multiple Choice

Those who invest in derivative instruments with the purpose of increasing rather than decreasing risk are known as:

• A)Option traders.
• B)Futures traders.
• C)Hedgers.
• D)Speculators.

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Definitions:

Field of Experience

Refers to the accumulated knowledge and skills that individuals or organizations possess, usually related to a specific industry or professional area.

Communication Process

The sequence of steps wherein information is transferred from a sender to a receiver effectively.

Feedback Loop

A system in which the output or result of an action is returned (fed back) to modify the next action or decision.

Response

An individual's reaction to a stimulus or an event, which can be measured in various contexts, including marketing and psychology.