Question: There is a defined link between the value of a derivative contract and its underlying. Given this relationship, what could you confidently recommend using derivatives
There is a defined link between the value of a derivative contract and its underlying. Given this relationship, what could you confidently recommend using derivatives for?
a. A substitute for the underlying
b. To speculate on the value of the underlying.
c. Risk management purposes.
d. All of the above.
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