Question: choices !! First question - hedging - Speculation Second !!!! -Short hedge - Long hedge last one Increased Decreased 4. Using derivatives to reduce risks

 choices !! First question - hedging - Speculation Second !!!! -Short

choices !!

First question

- hedging

- Speculation

Second !!!!

-Short hedge

- Long hedge

last one

Increased

Decreased

4. Using derivatives to reduce risks Aa Aa When dealing with futures, involves betting on future price movements. hedging speculation In a futures contracts are purchased in anticipation of price increases. The development of standardized contracts has led to a secondary market for swaps, which has liquidity and efficiency of the swaps market. the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!