Those Who Invest in Derivative Instruments with the Purpose of Increasing

question 62

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:

Ultimate Causes

Explanations concerning the evolutionary significance or genetic basis of a biological trait or behavior.

Learned Behavior

Behavior that an organism acquires or modifies as a result of experiences or interactions with the environment.

Direct Fitness

An individual's reproductive success, measured by the number of viable offspring it produces. Compare with inclusive fitness.

Proximate Behavior

Immediate, mechanistic explanations for biological functions, focusing on the how and why a behavior happens in the context of environmental stimuli.