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Which One of the Following Statements About Speculators in Futures

Question 27

Multiple Choice

Which one of the following statements about speculators in futures markets is correct?


A) Their main aim is to reduce their exposure to risk.
B) They make it difficult for hedgers to find someone to take the opposite position.
C) They aid hedgers by adding to the liquidity in the markets.
D) Once a trader is known as a speculator they are no longer allowed to participate in the markets.

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