A Derivatives Contract

question 46

Multiple Choice

A derivatives contract:

• A) increases the risk of both the hedger and speculator.
• B) increases the risk of the hedger and decreases the risk of the speculator.
• C) reduces the risk of the hedger and increases the risk of the speculator.
• D) reduces risk in both cases.

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Definitions:

Event Property

A property in programming that provides a way to respond to specific events that occur within an application, such as clicks or key presses.

On Click

Refers to an event triggered in software or a webpage by pressing and releasing a mouse or similar device on a specific interface element.

Conditional Expression

An expression in programming that will evaluate to true or false, often used to control the flow of execution in software.

Bang Notation

A programming syntax used in some languages like Visual Basic to access properties, methods, or objects, typically represented by an exclamation mark (!).