Which one of the following IS true:

a.

Arbitrageurs in derivatives markets bet on the future direction of price movements: in doing so, they take on large amounts of price risk.

b.

Hedgers in futures markets always close out their future positions with a loss: the loss is the premium they have to pay in order to get price insurance.

c.

Speculators in futures markets typically trade futures contracts to reduce the risk of their positions in the underlying assets.

d.

Futures markets are much less regulated than forward markets.

e.

None of the above is true.