Speculators differ from hedgers in the sense that:
A) speculators do not like risk.
B) hedgers seek to transfer risk.
C) speculators seek to transfer risk.
D) speculators are hedgers, there isn't any difference.

Question

Quizplus · Accepted Answer

Hedgers use futures contracts to secure an asset price to avoid the risks associated with price fluctuations, effectively transferring the risk to someone else, often speculators, who are willing to accept that risk in hopes of making a profit.

Speculators Differ from Hedgers in the Sense That