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Firms Use Options to Speculate Not to Reduce Risk

question 28

True/False

Firms use options to speculate not to reduce risk.


Definitions:

Legal Reason

A rationale or basis that is recognized or upheld by the legal system.

State Laws

The body of law enacted by each state or territory in the United States governing local affairs.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Federal Laws

Regulations established by the national government that apply throughout the country, superseding state and local laws where there is conflict.

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