_________ take positions in financial futures to reduce their exposure to future movements in interest rates or stock prices; ________ commonly take the opposite position and thus serve as counterparties on many transactions.

Question

Quizplus · Accepted Answer

Hedgers use futures to protect against adverse movements in prices or interest rates, while speculators take on risk, hoping to profit from future price movements.

_________ Take Positions in Financial Futures to Reduce Their Exposure