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Based on the three types of traders, which statement is correct? Swappers use derivatives to change futures positions into options positions. Arbitrageurs use derivatives to
Based on the three types of traders, which statement is correct?
Swappers use derivatives to change futures positions into options positions. | ||
Arbitrageurs use derivatives to reduce the risk that they face from potential future movements in a market variable. | ||
Speculators use derivatives to bet on the future direction of a market variable. | ||
Hedgers lock in a riskless profit by simultaneously entering into transactions in two or more markets. |
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