Examlex
The three problems with using the consumer price index as a measure of the cost of living are
Hedge
An investment position intended to offset potential losses or gains that may be incurred by a companion investment, a common risk management strategy.
Speculator
An investor who engages in the buying and selling of financial instruments with the aim of profiting from short-term market fluctuations.
Futures Contract
A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, typically traded on a futures exchange.
Underlying Asset
A financial asset upon which a derivative's price is based, such as stocks, bonds, commodities, or currencies.
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