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:

Stemplot

Also known as a stem-and-leaf plot, it is a graphical method of displaying quantitative data to assess its shape and distribution.

Heights

A measurement of how tall a person or object is, typically in units of feet, inches, or meters.

High School Students

Individuals who are enrolled in grades 9 through 12 in a secondary education institution.

Mathematics Achievement

The level of success or proficiency that an individual or group has attained in the area of mathematics.