Question: 7 . Using derivatives to reduce risks When dealing with futures,hedging is using transactions to lower risk. In along hedge , futures contracts are sold

7. Using derivatives to reduce risks
When dealing with futures,hedging is using transactions to lower risk.
In along hedge , futures contracts are sold to guard against price declines.
The development of standardized contracts has led to a secondary market for swaps, which hasincreased the liquidity and efficiency of the swaps market.

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