Question: Which Statement is correct? a. Speculators make money by setting up transactions and are the go betweens in the derivatives market. b. A firm should

Which Statement is correct?

a. Speculators make money by setting up transactions and are the go betweens in the derivatives market.

b. A firm should always hedge in order to reduce risk whenever they can

c. Dealers do not mind losing money as long as they are reducing their risk

d. Arbitrageurs try to find mispricings in the market where they can buy at a low price and simultaneously sell at a high price without taking on any risk.

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