Derivatives Can Be Used to Either Hedge or Speculate

question 17

Multiple Choice

Derivatives can be used to either hedge or speculate. These actions:

• A) increase risk in both cases.
• B) decrease risk in both cases.
• C) spread or minimize risk in both cases.
• D) offset risk by hedging and increase risk by speculating.
• E) offset risks by speculating and increase risk by hedging.

Understand the strategic use of highlighting undesirable features in negotiations.

Identify the role of memory biases such as the primacy effect in persuasion.

Comprehend the significance of counterargument development during persuasion.

Grasp the concept of social proof in determining appropriate behavior.