Derivatives Can Be Used to Either Hedge or Speculate

question 11

Multiple Choice

Derivatives can be used to either hedge or speculate. These actions:

• A) increase risk in both cases.
• B) decrease risk in both cases.
• C) spread or minimize risk in both cases.
• D) offsets risk by hedging and increase risk by speculating.
• E) offset risks by speculating and increase risk by hedging.

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Definitions:

Catch Up Developmentally

The process in which children who have experienced delays in certain areas of development make significant progress to reach the expected level of development.

Gestational Age

The period of time measured from the first day of a woman's last menstrual period to the current date, usually used to assess the developmental progress of a fetus during pregnancy.

Low Birth Weight

A term describing infants who are born weighing less than 2,500 grams (5 pounds, 8 ounces), which can be associated with various health and developmental risks.

Gestational Age

The age of an embryo or fetus calculated from the first day of the mother's last menstrual period, often used in assessing developmental milestones and pregnancy progress.