Although derivatives can be used as speculative instruments, businesses most often use them to
A)attract customers.
B)appease stockholders.
C)offset debt.
D)hedge risks.

Question

Quizplus · Accepted Answer

Derivatives are often used by businesses to hedge against risks such as changes in interest rates, currency exchange rates, and commodity prices. This helps them to reduce their exposure to potential losses and stabilize their financial performance. While derivatives can be used for speculation, this is not the primary reason why businesses use them.

Although Derivatives Can Be Used as Speculative Instruments, Businesses Most