What Are Business Firms Most Likely to Use Derivative Securities

question 32

Multiple Choice

What are business firms most likely to use derivative securities for?

• A) Hedging
• B) Speculating
• C) Doing calculus problems
• D) Market making

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Definitions:

Removed From Reality

A phrase describing a state or condition in which an individual is out of touch with the physical world or current circumstances.

Delusion

A false belief or judgment, often of a paranoid or grandiose nature, that is maintained despite being contradicted by reality or rational argument.

Reincarnation

The belief that the soul, after death, can begin a new life in a new body, a concept found in various religious and philosophical traditions.

Delusion

A strongly held belief that contradicts reality or rational argument, often a symptom of psychiatric disorders.