One difference between a hedger and a speculator is that the hedger:
A) may experience either a profit or a loss.
B) may not close out his position by taking an opposite position.
C) does not have to put up margin.
D) faces a risk without the futures contract.

Question

Quizplus · Accepted Answer

Hedgers use futures contracts to mitigate risk they already face in the market, while speculators take on risk to potentially profit from price changes.

One Difference Between a Hedger and a Speculator Is That