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:

Output

The amount of goods or services produced by a company, country, or economic system.

Human Development Index

An index measuring average achievements in a country in three basic dimensions of human development: long and healthy life, knowledge, and a decent standard of living.

Purchasing Power Parity

An economic theory and a method to compare the relative value of currencies, based on the cost of a standard set of goods and services in different countries.

Per Capita Income

The average income earned per person in a given area in a specified year.