In Reference to the Derivatives Market,a "Speculator

question 9

Multiple Choice

In reference to the derivatives market,a "speculator"

• 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:

Incentives

Rewards or benefits, often linked to performance, that motivate individuals to act in certain ways.

Downsizing

The elimination of a significant number of employees from an organization.