Which of the following is true?
A) The futures market is used for both hedging and speculating while the forward market is primarily used for hedging.
B) The futures market is used for both hedging and speculating while the forward market is primarily used for speculating.
C) Both the futures market and the forward market are primarily used for speculating.
D) The futures market is primarily used for hedgingwhile the forward market is used for speculating.

Question

​Which of the following is true?
A) ​The futures market is used for both hedging and speculating while the forward market is primarily used for hedging.
B) ​The futures market is used for both hedging and speculating while the forward market is primarily used for speculating.
C) ​Both the futures market and the forward market are primarily used for speculating.
D) ​The futures market is primarily used for hedgingwhile the forward market is used for speculating.

Quizplus · Accepted Answer

The futures market is used for both hedging and speculating, allowing investors to manage risk or make speculative bets on future market movements. The forward market, on the other hand, is primarily used for hedging, as it involves a customizable contract between two parties to buy or sell an asset at a predetermined price and date in the future.

​Which of the Following Is True

Which of the Following Is True