Derivatives Can Be Used to Either Hedge or Speculate

question 48

Multiple Choice

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

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

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Definitions:

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Motor Neurons

Nerve cells that transmit signals from the brain and spinal cord to muscles, initiating movement.

Interneurons

Neurons located within the central nervous system that process information received from sensory neurons and direct the function of motor neurons, playing crucial roles in reflexes and neuronal circuits.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the central nervous system to limbs and organs.