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Financial Markets & Products
Financial Markets & Products
Easy
Which of the following market participants is most likely to use futures contracts for hedging rather than speculation?
A
A wheat farmer locking in a selling price for next season's harvest
B
A proprietary trading desk taking directional bets on crude oil
C
A hedge fund exploiting mispricing between index futures and the underlying basket
D
A day trader using leverage to profit from intraday price movements in gold futures
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Tags
#hedging
#futures
#market-participants
#risk-management
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FRM Part I — Financial Markets & Products Practice Question | AcadiFi | AcadiFi