What Are the Primary Motives for a Hedger and a Speculator

question 48

Essay

What are the primary motives for a hedger and a speculator in the derivatives market?
If a wheat farmer sells wheat futures,is that hedging or speculating?
Explain.

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Definitions:

Genital Arousal

The state of heightened blood flow and sensitivity in the genital regions, typically associated with sexual excitement.

REM Sleep

A phase of sleep characterized by rapid eye movements, where the most vivid dreams occur, and marked by increased brain activity, resembling that of the waking state.

High Waking Metabolism

Refers to an increased rate of metabolism immediately after waking up, influencing energy levels and weight management.

Free Radicals

Unstable molecules that can cause damage to cells and contribute to aging and diseases due to their reactive nature.