Stock specialists and OTC dealers hedge their positions with stock index futures:
A)to profit from major market movements.
B)to reduce market risk on his or her inventory.
C)to reduce the unsystematic risk on the stocks in his or her inventory.
D)More than one of the above

Question

Quizplus · Accepted Answer

Stock specialists and OTC dealers hedge their positions with stock index futures to reduce market risk on their inventory.

Stock Specialists and OTC Dealers Hedge Their Positions with Stock