One Difference Between a Hedger and a Speculator Is That

question 45

Multiple Choice

One difference between a hedger and a speculator is that the hedger

• A)may have either a profit or a loss.
• B)may not close out his position by taking an opposite position.
• C)does not have to put up margin.
• D)faces a risk without the futures contract.

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Definitions:

Race Times

The durations taken to complete a race, often used in statistical analyses to compare the performance of different athletes or conditions.

Government Employees

Individuals who work within the various branches of the government (national, state, local) and are paid through the public sector budget.

Private Sector Workers

Employees who work for businesses owned by individuals or entities other than the government or public sector.

Phalanges

The bones of the fingers and toes.