Financial derivatives are powerful tools that can be used by management for purposes of:
A) speculation.
B) hedging.
C) human resource management.
D) A and B above

Question

Quizplus · Accepted Answer

Financial derivatives such as options, futures, and swaps can be used for both speculative purposes (such as trying to make a profit from predicting future market movements) and hedging purposes (such as reducing risk by offsetting potential losses in other investments). They are not typically used for human resource management.

Financial Derivatives Are Powerful Tools That Can Be Used by Management