In Reference to the Derivatives Market,a "Hedger

question 1

Multiple Choice

In reference to the derivatives market,a "hedger"

• A)attempts to profit from a change in the futures price
• B)wants to avoid price variation by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position
• C)plays a zero-sum game
• D)b and c

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Definitions:

Dissociation

A mental process of disconnecting from one's thoughts, feelings, memories, or sense of identity, often as a response to traumatic events.

Semicircular Canals

Structures within the inner ear that are key components of the vestibular system, helping to maintain balance and spatial orientation.

Retinal Disparity

A binocular cue for perceiving depth based on the slight difference in the visual images that each eye perceives because of their different angles.

Cochlear Implants

A medical device that partially restores hearing by bypassing damaged portions of the ear and directly stimulating the auditory nerve.