Those Who Invest in Derivative Instruments That Increase Rather Than

question 51

Multiple Choice

Those who invest in derivative instruments that increase rather than reduce risk are known as:

• A) option traders.
• B) futures traders.
• C) hedgers.
• D) speculators.

---

Definitions:

Manufacturing Costs

The total expense involved in manufacturing a product, including direct materials, direct labor, and overhead costs.

Direct Materials

The raw materials directly used in the production of a product, easily traceable to the finished good.

Absorption Costing

An accounting method that includes both variable and fixed manufacturing costs in the cost of a product.

Production Costs

Expenses directly and indirectly involved in creating a product, including materials, labor, and overhead costs.