The buyer of a derivative is typically _______ comfortable assuming risk compared to the seller.
A) more
B) less
C) equally
D) None of these are true.

Question

Quizplus · Accepted Answer

The buyer of a derivative is typically more comfortable assuming risk compared to the seller because they are seeking to profit from price movements or hedge against possible losses. The seller of a derivative is usually looking to earn a premium and may not be as comfortable taking on the risk associated with the underlying asset.

The Buyer of a Derivative Is Typically _______ Comfortable Assuming