For some investors, derivatives can be attractive financial assets to purchase because

Question

Quizplus · Accepted Answer

Derivatives can be used to offset the possibility of another risk faced by the investor, such as commodity price fluctuations or interest rate changes. This makes them attractive to some investors who want to hedge their investments. However, derivatives also carry their own unique risks and should be thoroughly understood before investing in them.

For Some Investors, Derivatives Can Be Attractive Financial Assets to Purchase