The most common reason that corporate companies use the futures and options markets is to:

Question

Quizplus · Accepted Answer

The most common reason that corporate companies use the futures and options markets is to hedge risk. Hedging is a strategy used to reduce the risk of adverse price movements in an underlying asset. By using futures and options contracts, companies can lock in prices for future purchases or sales, thereby protecting themselves from potential losses due to price fluctuations.

The Most Common Reason That Corporate Companies Use the Futures