A Person Who Buys and Sells Future to Reduce Risk

question 10

Multiple Choice

A person who buys and sells future to reduce risk is called a

• A) plunger.
• B) spiker.
• C) investor.
• D) hedger.

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Definitions:

Common Resource

A natural or man-made resource that is non-excludable and rivalrous, such as fish in the ocean or a public park, which can lead to overuse and depletion.

Fishing in the Ocean

The activity of catching fish in the ocean for commercial, recreational, or subsistence purposes.

Property Rights

Legal rights to own, use, and dispose of assets, which can include intellectual property, land, or personal property.

Common Resources

Resources that are available to all but are susceptible to overuse because of their non-excludable and rivalrous nature, leading to potential depletion or degradation.