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The Major Advantage of Investments in Derivatives Is Being Able

Question 101

Multiple Choice

The major advantage of investments in derivatives is being able to


A) participate in the price movements of the underlying security with less risk than the security itself.
B) participate in the price movements of the underlying security without buying the security itself.
C) realize a significantly less risk by investing in a derivative security than by investing in the underlying asset itself.
D) reduce risk by only trading in the price movements of the asset.

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