Kizspy | Question: 29
(Choose 1 answer)
Which of the following accurately describes the roles of speculators and hedgers in a derivatives market?
A. Speculators aim to minimize price variation by locking in a purchase price, while hedgers seek to profit
from changes in futures prices
B. Speculators attempt to profit from changes in futures prices, while hedgers aim to avoid price variation by
locking in purchase or sale prices
C. Speculators aim to stabilize market prices, while hedgers attempt to maximize price volatility
D. Speculators and hedgers both seek to profit from changes in futures prices, with no distinction in their roles
