Which of the Following Statements About the Presence of Speculators

question 88

Multiple Choice

Which of the following statements about the presence of speculators in futures markets is correct?

• A)Their main objective is to reduce their exposure to risk.
• B)They aid hedgers by increasing the liquidity in futures markets.
• C)They make it difficult for hedgers to find someone to take the opposite side of their positions.
• D)Once a futures market participant is known to be a speculator he or she is no longer allowed to participate in the market.

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Definitions:

Thermosetting

The process of transforming a polymer into a more durable material through a curing process involving heat or chemical action.

Thermoplastics

A type of plastic material that becomes moldable above a specific temperature and solidifies upon cooling.

Chromium Vanadium

Chromium Vanadium is an alloy of chromium and vanadium, commonly used in the production of high strength steel tools due to its durability and resistance to corrosion.

AISI

The American Iron and Steel Institute, an association focused on steel production and its standardization across industries.