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2. The uses of derivatives include: I) speculation; II) financial engineering; III) financial innovation; IV) hedging and risk management
(A) II, III, and IV only
(B) I, II, III, and IV
(C) II and IV only
(D) I only
3. When should a hedger consider a Long Hedge?
(A) No prediction about price change in the future
(B) Prediction of price increase in the future.
4.When should a speculator consider a Short Forward?
(A) No prediction about price change in the future
(B) Prediction of price increase in the future.
(C) Prediction of price decrease in the future.
(D) Prediction of no change in price in the future.
(C) Prediction of price decrease in the future.
(D) Prediction of no change in price in the future.
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