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In Reference to the Derivatives Market,a "Hedger

Question 10

Multiple Choice

In reference to the derivatives market,a "hedger":


A) attempts to profit from a change in the futures price.
B) wants to avoid price variation by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position.
C) plays a zero-sum game.
D) speculates the price movement.

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